In my organization, a shared student account is used on common computers for students (and other users). This allows teachers to start lessons right away without being distracted by students who have forgotten their school logins or passwords. However, this setup can sometimes cause subtle issues.
During the initial setup, the student account is used to sign in to Microsoft applications. But once the allowed device limit is reached, you may encounter an error message like: User … is not eligible to enroll a device of type Windows. Reason DeviceCapReached. Error Code:894697458.

The solution to this problem is to increase the limit in the Microsoft Entra Admin Center under:
Maximum number of devices per user (Designates the maximum number of devices a user can have in Microsoft Entra. If a user reaches this quota, they will not be able to add additional devices until one or more of their existing devices are removed).
Open the Microsoft Entra Admin Center → Devices → Manage → Device settings → Maximum number of devices per user.

After setting the appropriate limit, try signing in again — the issue Reason DeviceCapReached should now be resolved.
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