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We are running into authentication issues. Our main O365 tenant uses a fully qualified login name, but PowerBI when we share tries to use email address. The net result is when people go to share the link works but they can't access the report.
@dgrant What are you using for user managment? Azure AD, on premises AD? Do you have the environments synced if so?
The "email" is your User Principal Name or UPN... Sounds like something is disjointed in your user management...