Stolen Device Protection - A Little Hiccup

This is a little bit of annoyance. Any idea why this would be? Had to turn it off to add the account. Waiting the 1 hr wait period right now.

I’m just guessing here but it’s probably because the Exchange server could technically come with some configuration/device management rules like the ability to remote wipe a device so this probably requires making some security-related changes on the device that are otherwise protected by Stolen Device Protection.

Apple documents that it needs to be disabled but does not specify why exactly.

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I read that with that feature turned on, you may have to wait an hour when performing certain tasks if you are not in a location that the phone recognizes. This supposedly stops a thief from changing or wiping your device. Have you checked Apple Support page?