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VBS login issue post completion of Identity Upgrade pre tasks

We have done the identity upgrade pre tasks in Dev environment after which VBS access is available only through SSO. Non SSO users are not able to get into VBS.

We have tried to reset the password of an SSO user through OCI (User Management) but getting the error message as 'The user is authenticated against an external Cloud service. Oracle Identity Cloud Service is not an authoritative source for user attributes.'

Has anyone seen this issue. How do we fix the access issue to VBCS for Non SSO Users.

In another non prod environment (TST) we have not performed the Identity Upgrade Pre-task steps and not seeing any issue getting into VBCS.

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