If you see a red alert circle next to the Backup Portal's Settings tab icon:
- and a notification New users could not be added to backup due to insufficient licenses on the Settings page, it means that the system has detected new M365 tenant users whose backups should be enabled automatically, but no users have been added to backup because the customer does not have enough backup licenses.
You will see this notification only if you have selected the option 'Add new users automatically to backup' or 'Add new AD Group users automatically to backup'.
You can resolve the issue by purchasing more backup licenses for the customer. You can also check if there are any unneeded user accounts still in backup - e.g. employees who are no longer working in the company. When you release a license from such user by disabling the user's backup, the license is immediately available to new users.
The notification about insufficient backup licenses is also emailed to the backup report recipients that can be in Service Provider and/or customer organization, depending on the Email Report settings.