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Azure B2B Multi-tenant application external user login issue

We have setup Azure B2B Multi-tenant AD which allows external user as guest. Setup works well but for some reason few of our external customers (guest users) are not able to login.

Few are getting Admin Consent and few are getting these error message - 'Using application MYAPPNAME is currently not supported for your organization customer.org because it is in an unmanaged state.An administrator needs to claim ownership of the company by DNS validation of customer.org before the application MYAPPNAME can be provisioned.'

Major change we made here is from Single Tenant App to Multi-tenant Azure AD App.

We are using MSAL authentication.

Any help?