Refresh Failure

Hi JKPrasannaD ,

Thank you for reaching out to the Microsoft Community Forum. The error AADSTS53000 - DeviceNotCompliant indicates that Microsoft Entra ID (Azure AD) Conditional Access policy is blocking the token request because the device used for authentication is not meeting compliance requirements.

Please try below general troublesshooting steps to fix the issue.

1. Please Configure Service Principal authentication instead of user credentials. Assign it access to Data source and Power BI dataset.

2. Use On-Prem Gateway, Configure Enterprise Gateway and Bind dataset to gateway. use stored credentials within gateway

3. Please check with Azure admin team and ask them to exclude Power BI / Service Accounts from CA Policy.

I hope this information helps. Please do let us know if you have any further queries.

Regards,

Dinesh

Hi JKPrasannaD 

The AADSTS53000 error is happening because your company's Microsoft Entra Conditional Access policies are enforcing a strict device compliance check that the cloud-based Power BI Service engine simply cannot pass. While your personal machine or Virtual Desktop (MVD) is fully compliant, the scheduled data refresh runs in a background Microsoft cloud environment that lacks a physical device identity to present to your security framework, causing the policy to block the connection. To fix this, your IT or Entra administrator needs to modify the conditional access policy targeting the data source (like SharePoint or Azure SQL) and explicitly add the account running the refresh to the policy's Exclude list. If security policies forbid user exclusions, you should transition the dataset to authenticate via an On-Premises Data Gateway or use a Service Principal (App Registration), which shifts the authentication rules away from user-level device compliance checks and allows the background cloud refresh to complete successfully.