Security defaults and Conditional Access policies are mutually exclusive. To enable security defaults in an Azure AD tenant, all existing Conditional Access policies must first be disabled or deleted. The presence of CAPolicy1 prevents anyone, regardless of their administrative role, from enabling security defaults. Therefore, the first and necessary action to achieve the goal is to remove this blocking policy. After the policy is deleted, an administrator with the appropriate permissions (such as Security Administrator or Global Administrator) can then proceed to enable security defaults.

A. Configure Identity Governance. Identity Governance features, such as access packages and access reviews, are unrelated to the configuration of tenant-wide security defaults. B. Delete Package1. Package1 is an access package within Identity Governance. Deleting it has no impact on the ability to enable or disable security defaults. D. Assign Admin1 the Authentication administrator role for Au1. This is incorrect for two reasons: the role and the scope. The Authentication Administrator role does not have permissions to manage security defaults, and a role scoped to an administrative unit (Au1) cannot manage tenant-wide settings.

1. Microsoft Entra documentation, "Security defaults in Microsoft Entra ID": This document explicitly states the relationship between security defaults and Conditional Access.

Section: "Disabling security defaults"

Content: "If you have Conditional Access policies enabled in your directory, security defaults will be unavailable to you... To enable security defaults, you must disable all Conditional Access policies." This supports the correct answer (C).

2. Microsoft Entra documentation, "Microsoft Entra built-in roles": This source details the permissions for different administrative roles.

Section: "Security Administrator"

Content: Lists "manage security defaults" as a permission for this role.

Section: "Authentication Administrator"

Content: Permissions are limited to setting or resetting authentication methods for users. It does not include managing security defaults, which invalidates option (D).

3. Microsoft Entra documentation, "Administrative units in Microsoft Entra ID": This document explains the purpose and limitations of administrative units.

Section: "Administrative unit management scenarios"

Content: It clarifies that AUs are for delegating permissions over a subset of directory objects (users, groups, devices). Tenant-wide settings like security defaults are managed at the directory level, not within an AU scope. This further invalidates the scoping in option (D).