Microsoft Credential Provider (MCP) allows for a local "no2fa" group so local users can bypass VIP MFA. This setting is working fine when the computer is connected to the network.
However, when the local box is disconnected from the network (simulating a network outage) the local users are then getting prompted for VIP MFA credentials.
Microsoft Credential Provider integration on Windows machines
The 'no2fa' group is treated differently than the local registry setting for 'ChallengeLocalUsers'.
For loss of network connectivity, ensure the local users are a member of the local Windows "no2fa" group
Microsoft Credential Provider documentation can be found here: https://techdocs.broadcom.com/us/en/symantec-security-software/identity-security/vip/cloud/Related-Documents.html