We couldn't authenticate with the credentials provided. Please try again.
At a Glance
- Target Audience
- Multi-tenant Microsoft 365 Admins, SharePoint Administrators
- Problem Solved
- Excel desktop app fails to authenticate with SharePoint Online files due to cached credentials from wrong tenant, affecting multi-tenant admins.
- Use Case
- Accessing SharePoint Excel files via Power Query or direct open in multi-tenant Microsoft 365 environments.
This error hits when Excel grabs cached creds from the wrong tenant. Here is the 30-second clear: File > Account > Sign out all, then add the right tenant via online file open. If you manage multiple Microsoft 365 environments, you have likely stared at this infuriating message. You have valid permissions. You can view the files perfectly in your web browser. Yet, your desktop application refuses to connect.
According to Collab365, this specific identity token overlap affects 70% of multi-tenant admins.1 It is a massive drain on productivity. Collab365 forum threads like the original show this hits multi-tenant admins hardest. Back in September 2023, user Nick Curnickorrin described getting this exact error in Excel desktop apps when connecting to SharePoint document libraries (specifically .xlsb files).2 Despite being a site system administrator, his desktop app was blocked.2
Key Takeaway: The "Couldn't Authenticate" error is rarely a true permissions failure. It is almost always a credential caching conflict inside the Windows Web Account Manager.
In that original thread, comments suggested piecemeal fixes. Some users suggested clearing cached credentials, while others recommended using browser profiles per tenant.2 A few suggested signing out of Office apps entirely, or opening files online first.2 However, there was no confirmed, authoritative resolution provided.
We at Collab365 have compiled this definitive, expert-level guide for 2026 to solve the issue permanently. We will cover Entra ID updates, modern authentication mechanics, passwordless login impacts, and Copilot-era permissions.
TL;DR / Quick Fixes Box:
- 1. Clear Office Cache (Fastest): Go to Excel > File > Account > Sign out of all accounts. Then delete the %LocalAppData%\Microsoft\IdentityCache folder.3
- 2. Browser Profile Switch: Stop using regular browser tabs. Create dedicated Microsoft Edge or Google Chrome profiles for each client tenant.4
- 3. Re-add the Account: Navigate to Windows Settings > Accounts > Email & accounts > Access work or school. Disconnect the conflicting tenant account, then reconnect it.3
- 4. Open Online First: Open the target SharePoint file in Excel for the web first. Then, click "Editing > Open in Desktop App" to force the correct authentication token.5
- 5. Check Entra ID Policies: Ensure your tenant's Conditional Access policies are not silently blocking desktop applications while permitting web access.6
What Triggers "Couldn't Authenticate" in Excel-SharePoint Connections?
We have seen this in Collab365 forums from admins juggling client tenants. You log into Client A to check an Exchange inbox. Ten minutes later, you open Excel to query a SharePoint list for Client B. Suddenly, Excel for Microsoft 365 (Version 2409+) throws a wall in your face. The application states: "We couldn't authenticate with the credentials provided".2
Admins used to switch tenants manually. Now caching trips them up constantly. Here is the fix, but first, you need to understand the mechanics.
The root cause lies in multi-tenant token overlap colliding with modern authentication caching. Windows 11 and Microsoft 365 use a system called the Web Account Manager (WAM). This works alongside the Microsoft Entra broker plugin to provide a seamless Single Sign-On (SSO) experience across your device.3
Key Takeaway: When Excel queries SharePoint Online libraries, it does not ask you for a password. It silently asks the local Windows token broker for an active session ticket.
If the token broker holds a primary token for Tenant A, and you try to query a file in Tenant B, Excel often submits Tenant A's token by default. SharePoint Online receives a token for the wrong Entra ID directory. It instantly rejects it. Excel then displays the generic authentication error because it does not know how to handle the silent rejection.
This behaviour is tightly bound to how legacy versus modern authentication pathways are coded. When you connect to Excel files stored in SharePoint Online from Power BI Desktop or Excel Power Query, the software attempts to match your active "organizational account".7 If the cached organizational account does not perfectly match the target tenant's exact domain structure, the connection drops.
The Shift to Strict Enforcement
This issue is heavily amplified in 2026. Microsoft has fundamentally changed how Office desktop apps interact with local identities. With the introduction of Copilot-era data boundaries and mandatory multi-factor authentication (MFA) enforcement across all Entra ID tenants, token verification is stricter than ever.10
Key Takeaway: A slightly stale token that might have worked for a simple file download in 2024 will instantly trigger a hard block today due to enhanced security baselines.
In the past, the system might have prompted you to log in again. Today, background services often just fail silently to prevent token interception attacks. This leaves the user staring at a broken Power Query connection.
When you use Power Query to pull information from an Excel file in SharePoint, you might select the "Organizational account" authentication method.7 If the system is confused by your multi-tenant setup, it will state "We couldn't authenticate with the credentials provided. Please try again.".7 The prompt might flash for a millisecond and disappear.9 This rapid flashing is the WAM broker attempting to use a cached token, failing, and crashing the login window before you can intervene.
Fix 1: Clear Cached Credentials in Office Apps (Fastest for Most)
If you need this fixed right now, you must completely flush the local identity cache. This forces the Excel desktop application to forget every tenant it currently knows. It will then be forced to ask you for fresh credentials.
We recommend doing this before attempting any other complex fixes. Based on Microsoft Learn, here is the exact, tested path to achieve a clean slate on Windows 11 in 2026.3
Key Takeaway: Closing Excel is not enough to clear your identity state. The token broker runs continuously in the background. You must actively sign out to kill the active session.
Step 1: Sign Out of Excel Completely
Do not just close the application window. You must explicitly break the session tie between the software and the cloud.
- Open Excel for Microsoft 365.
- Click on File in the top left corner.
- Select Account at the bottom of the left-hand menu.2
- Under your user information, click Sign out.
- If you see multiple accounts listed under the "Connected Services" section, remove all of them.
- Close Excel entirely. Also close all other Microsoft 365 applications, including Word, Outlook, and Microsoft Teams.
Step 2: Purge the Local AppData Identity Folders
Windows stores Office identity tokens deep in the local application data folders. Corrupted or conflicting cached credentials here are the primary culprits for continuous login loops.3 You need to manually delete these temporary files.
- Open Windows File Explorer.
- In the address bar at the top, paste the following exact path and press Enter: %LocalAppData%\Microsoft\OneAuth.3
- Delete every single file and folder inside this directory.
- Next, paste this path into the address bar: %LocalAppData%\Microsoft\IdentityCache.3
- Delete everything inside this folder as well.
- Finally, you must clear the Entra broker plugin cache. Paste this path: %LocalAppData%\Packages\Microsoft.AAD.BrokerPlugin_cw5n1h2txyewy.3 Clear its contents completely.
Key Takeaway: Deleting the OneAuth and IdentityCache folders is perfectly safe. It will not delete your personal files, macros, or spreadsheets. It only deletes the temporary security keys.
Step 3: Clear Windows Credential Manager
Sometimes, Windows itself holds onto legacy basic authentication credentials or stale web passwords.12 The Office app might be trying to use an old stored password instead of triggering a modern web login flow.
- Click the Windows Start button and type "Credential Manager". Hit Enter.
- Click on the Windows Credentials tab.3
- Scroll down to the Generic Credentials section.
- Look carefully for any entries that begin with MicrosoftOffice16, OneDrive Cached Credential, or anything containing your target tenant's name or your administrative email address.12
- Click the drop-down arrow next to the offending entry.
- Select Remove to delete the credential from the system cache.13
Step 4: Verify "Access Work or School" Settings
If you manage multiple tenants, Windows 11 might have registered your entire device to the wrong Entra ID directory. This is a common trap. When you log into an app, Microsoft sometimes asks "Allow my organization to manage my device." If you click yes, Windows registers the device to that client's tenant.3
Key Takeaway: If your device is registered to Client A, Excel will always try to use Client A's identity first, even if you are trying to work on Client B's files.
- Open the Windows Settings application.
- Navigate to Accounts on the left menu.
- Select Email & accounts.
- Scroll down and click on Access work or school.3
- Review the list of connected accounts. If you see the conflicting client tenant listed here, click on it and select Disconnect.3
- Reboot your machine.
- Open Excel, navigate to your file or Power Query connection, and try again. You will finally be prompted for a fresh, correct login.
Fix 2: Use Tenant-Specific Browser Profiles
If you clear your cache but continue working across multiple clients on the same machine, the error will inevitably return within days. The local cache will simply fill up with conflicting tokens again.
The only permanent, structural fix for multi-tenant management in 2026 is absolute isolation. You must stop using standard incognito windows. They still share some background resources, IP states, and fail to keep persistent, secure sessions.4
Key Takeaway: If you manage more than three Microsoft 365 tenants, relying on standard browser tabs or incognito windows is a massive security and productivity risk. Use dedicated profiles.
Browser profiles act as entirely separate sandboxes. A dedicated Google Chrome or Microsoft Edge profile has its own cookies, its own cache, and its own local storage space. When you click a SharePoint link in Profile A, it has absolutely no knowledge of the Entra ID session running concurrently in Profile B.
Setting Up Native Edge or Chrome Profiles
This is the free, natively supported method recommended by most systems administrators.4 It requires discipline but completely solves web-to-desktop token bleeding.
- Open Microsoft Edge or Google Chrome.
- Click your circular profile picture icon in the top right corner, located next to the three-dot settings menu.
- Select Add profile or Set up new personal profile.
- Name the profile clearly after your client (e.g., "Contoso Admin").
- Choose a distinct colour theme for the browser window.
- Sign into Microsoft 365 services exclusively within this profile.
Key Takeaway: Colour coding is crucial. When you have five windows open, the colour instantly tells you which tenant you are managing without needing to check the URL bar.
Whenever you need to work on Client A's SharePoint files, you exclusively use the "Client A" browser profile. This strict separation prevents token bleed into your desktop applications. This works perfectly as long as you initiate the desktop app launch from the correct browser profile.
Third-Party Multi-Session Tools (2026 Comparison)
For power users or managed service providers handling 20+ tenants, native browser profiles become visually cluttered. Opening 20 different Edge windows consumes massive amounts of RAM and makes task switching difficult. Many admins turn to multi-session extensions and anti-detect browsers to manage identities.14
Tools like SessionBox were highly popular a few years ago.15 However, the market has shifted in 2026 toward native application sandboxing and specialized productivity tools.14
If you are evaluating multi-session tools for tenant management, here is how the landscape looks today:
- SessionBox: This tool allows you to open new tabs with different identities in the exact same browser window.14 It assigns a different colour to each tab to help you keep track.14 However, in 2026, the company has pivoted heavily toward "anti-detect" features.14 This makes it unnecessarily complex, overkill, and sometimes unstable for standard Microsoft 365 administrative tasks.16
- Sendwin: Widely regarded in 2026 as the simplest and most effective alternative to SessionBox.17 It provides clean cookie and session isolation without the complex fingerprint spoofing overhead.17 It is highly optimized for productivity workflows and switching rapidly between Entra ID admin centers.17
- GoLogin: If you want absolute security, GoLogin is a standalone Chromium-based browser that completely separates profiles into deep virtual environments.16 If you are tired of Chrome extensions crashing or leaking data, GoLogin is highly robust, though it requires a paid monthly subscription starting around $24.16
- Firefox Multi-Account Containers: A brilliant, free native feature built directly into Mozilla Firefox.4 It allows each tab to be a different virtual profile, colour-coding them perfectly.4 It is highly recommended for admins who prefer not to use Chromium-based browsers.4
Key Takeaway: If you only manage a few tenants, stick to native Edge profiles. If you manage dozens of clients and need to switch rapidly within a single window, look into Sendwin or Firefox Containers.
Fix 3: Open Online First, Then Desktop
When you try to pull data from a SharePoint library directly via Excel Desktop's "Get Data" or Power Query menu, Excel relies purely on its internally cached token.7 If that token is slightly stale or belongs to the wrong tenant, it fails instantly.7
However, you can force Excel to adopt the correct token by initiating the connection from the web browser first. This is a highly effective, clever workaround that bypasses the local token broker's confusion entirely. By opening the file in SharePoint Online first, you prove to the Microsoft 365 backend that you have an active, fully authenticated session for that specific tenant.
The Detailed Step-by-Step Flow
- Open your tenant-specific browser profile (as set up in Fix 2).
- Navigate directly to the SharePoint Online document library containing your target .xlsx or .xlsb file.
- Click on the file name. It will open in Excel for the web within your browser.
- Wait for the file to load completely. In the top ribbon of Excel for the web, locate the Viewing or Editing drop-down menu.
- Select the Open in Desktop App option.5
Key Takeaway: Clicking "Open in Desktop App" sends a secure, temporary authentication payload from your verified browser directly into the local Excel application. It overrides stale local cache data.
Why This Forces Correct Authentication
When you click that button, the browser uses a specific URI handler to launch the Excel executable on your machine. It executes a background command that looks something like this: "C:\Program Files\Microsoft Office\root\Office16\EXCEL.EXE" "https://tenant.sharepoint.com/:x:/r/sites/Shared Documents/file.xlsx".18
Because the request originates from a fully authenticated web session, the browser passes the active session context directly to the desktop app. This forces Excel to wake up, realise it needs to access a specific tenant, and use the fresh credentials provided by the browser. It stops Excel from digging into its own stale local cache.
Power Query URL Cleanups
If you are building Power Queries in Excel and still hitting the "Couldn't authenticate" wall, check your URL strings. Some users report that removing specific URL query parameters fixes secondary authentication loops.
If you paste a SharePoint link into Power Query that ends with ?web=1, delete that parameter.19 Furthermore, if your URL contains the /x:/r/ routing segment (e.g., https://tenant.sharepoint.com/:x:/r/sites/Folder/file.xlsx), delete that part so the URL reads cleanly as https://tenant.sharepoint.com/sites/Folder/file.xlsx.[20](#sources)
Key Takeaway: The clean path allows the desktop app to query the raw file directory directly without getting confused by web-rendering routing commands designed for the browser interface.
Advanced: Check Entra ID & Conditional Access Policies
Let's assume you have cleared your cache perfectly. You have isolated your browsers. You have forced the web-to-desktop handover. But Excel still throws the "Couldn't authenticate" error. At this stage, the problem is no longer local to your machine. The problem is in the cloud.
Specifically, you are likely being blocked by a Microsoft Entra ID Conditional Access (CA) policy.21 Conditional Access policies are the ultimate gatekeepers of your Microsoft 365 environment.21 They evaluate every single sign-in attempt based on user location, device compliance, and the specific application type requesting access.
Key Takeaway: A poorly configured Conditional Access policy can silently block desktop applications while simultaneously allowing full web browser access. This creates incredibly confusing troubleshooting scenarios.
Common CA Policies Blocking Desktop Auth
Administrators often build policies intended to secure web traffic but accidentally block legacy or desktop clients. Because Excel desktop authenticates differently than Excel for the web, it gets caught in these traps.
Here are the most common CA policy misconfigurations we see causing Excel authentication drops in 2026:
| Policy Configuration | Why it Blocks Excel Desktop | How to Fix It |
|---|---|---|
| Require Compliant Device | If the user's laptop is not enrolled in Intune for that specific tenant, the desktop app is blocked.22 Web browsers are often exempt from this check. | Add a device platform exclusion or use a trusted location IP whitelist for multi-tenant administrators.6 |
| Block All Resources | Admins build a "block all" policy but forget to properly exclude "Office 365" or "Microsoft 365 applications".6 | Review the policy's target resources and ensure the Office 365 suite is fully excluded.23 |
| App-Enforced Restrictions | Forces strict session controls on desktop apps trying to pull data from SharePoint.23 | Check the "Session" controls in the CA policy. Disable app-enforced restrictions for trusted admin accounts.23 |
| Require Hybrid Entra Join | Blocks any device that is not physically joined to the local on-premises domain, instantly killing remote admin access.22 | Scope the policy strictly to standard users, leaving "break-glass" and multi-tenant admin accounts excluded.23 |
Key Takeaway: For ongoing troubleshooting, the Collab365 Spaces dedicated to M365.
Steps to Audit CA Policies in the Entra Portal
Do not guess which policy is blocking your Excel connection. Microsoft provides exact tooling to find out.
- Sign in to the Microsoft Entra admin center as at least a Reports Reader or Conditional Access Administrator.6
- Browse to Entra ID > Monitoring & health > Sign-in logs.22
- Add a filter for your specific administrative username and set the Status drop-down to Failure to limit the noise.24
- Look closely at the error codes generated by the failed Excel login attempts.
- If you see Error 50058, the user was authenticated but the session expired or the token was invalid, proving it is a local caching issue.24
- If you see Error 500121, the user failed the MFA prompt. Often, this means the prompt was suppressed or never appeared in the desktop app.24
- If you see Error 70046, the session expired or a reauthentication check failed.24
- Click on the failed log entry and navigate to the Conditional Access tab. This tab will explicitly name the exact policy that blocked the Excel connection.
To test safely before making changes, use the What If tool. Navigate to Conditional Access > Policies > What If.21 Enter the user, the target app (Office 365), and the device state.21 The tool simulates a sign-in and tells you exactly which policies will apply and whether the result is a block or a grant.21
Remember, in Entra ID evaluation logic, if any matching policy blocks access, the final result is always a Block, regardless of how many other permissive policies exist.21 Block always wins.
SharePoint Side: Verify Permissions & Sensitivity Labels
Let us say Entra ID is perfectly clean. The sign-in logs show a total success. There are no Conditional Access blocks. But Excel still throws the error when querying the file. At this stage, the issue is isolated to the SharePoint Online document library itself.
While basic file-level unique permissions can cause access denied errors, the "Couldn't authenticate" error is increasingly tied to advanced compliance features.
The 2026 Sensitivity Label Problem
In April 2026, Microsoft rolled out a major update to Office for the web. This update allows users to apply sensitivity labels with "user-defined permissions" directly within the browser.25 Previously, you could only configure these custom permissions in the desktop application.26 This is a fantastic security update, bringing feature parity to the web, but it has created a massive headache for data querying.
If a file in SharePoint is protected by a sensitivity label that applies encryption, SharePoint and OneDrive must be able to process the contents to allow co-authoring, eDiscovery, and external querying.27 However, the 2026 compliance rules dictate that SharePoint cannot process files if the encryption uses "Double Key Encryption" (DKE).27 It also fails if the label is set to expire user access on a specific date (anything other than "Never").27
Key Takeaway: If a SharePoint .xlsx file is encrypted with a highly restrictive sensitivity label, Excel Power Query cannot process it. This results in a silent authentication failure.
Furthermore, if the labeled file contains embedded Power Query data, custom XML parts, or specific legacy add-ins, the Microsoft 365 service cannot process the content natively.27 When you try to connect via Excel desktop, the app attempts to read the underlying data structure. It hits the encryption wall and returns an authentication error because it lacks the minimum "View" usage rights in that specific automated system context.27
If a document is labeled while it is "checked out" in SharePoint, the Sensitivity column will not even display the label name until it is checked back in.27 This makes troubleshooting incredibly frustrating.
How to Fix Label Interference
- Open the SharePoint document library in the browser.
- Check the Sensitivity column for the file you are querying.
- If the file has a label like "Confidential - User Defined" or anything applying heavy encryption, it is likely blocking your desktop query.28
- As a test, create a copy of the Excel file. Remove the sensitivity label entirely (or apply a baseline label without encryption).27
- Try to connect to this clean file via Excel Desktop. If the connection works, the encryption label is your confirmed culprit.
Ensure you have enabled co-authoring for files encrypted with sensitivity labels in your tenant. Without this feature enabled in the Purview portal, the desktop apps will constantly struggle to sync credentials with SharePoint's backend infrastructure.26
2026 Updates: Passwordless & Copilot Impact
The landscape of Microsoft 365 authentication has shifted dramatically this year. Two major technologies are fundamentally altering how Excel desktop authenticates with SharePoint: Microsoft 365 Copilot and FIDO2 Passkeys. Understanding these changes is vital for multi-tenant administrators.
The Copilot-Era Data Requirements
In March 2026, Microsoft expanded "Edit with Copilot" capabilities in Excel, powered by advanced Work IQ context.29 Copilot is now deeply integrated into the Office desktop apps. To function, it requires constant, seamless authentication to the Microsoft Graph to pull context from across your entire tenant.10
If your credentials are even slightly misaligned, Copilot will fail to function in Excel. More importantly, Copilot now supports reading locally stored modern workbooks.30 If you are experiencing authentication errors, test the Copilot integration.
Key Takeaway: Open Excel, ensure you are signed in, and click the Copilot icon. If Copilot returns an error stating it cannot reach your organizational data, you have absolute confirmation that your Windows WAM broker is providing a dead or mismatched token.
FIDO2 Passkeys and Desktop Apps
By 2026, the traditional password manager is becoming obsolete for enterprise users.31 FIDO2 passkeys are natively supported across all major browsers and operating systems. They are endorsed by CISA as the only truly phishing-resistant method of authentication.31 Microsoft Entra ID now broadly supports device-bound passkeys stored in Microsoft Authenticator or on physical hardware security keys.32
Key Takeaway: Passkeys eliminate the need for typed passwords, but they rely heavily on the system's default web browser broker to pass authentication safely to desktop apps.
If your organization has enforced passkey sign-in via a Conditional Access authentication strength policy 32, you might run into highly specific issues with Excel. Desktop applications using the Microsoft Authentication Library (MSAL) rely on the Windows Authentication Manager (WAM) to handle these passkey prompts.8
If your default Windows browser is misconfigured, or if you are using an unsupported third-party browser as your system default, the FIDO2 prompt may fail to render inside Excel. The login window simply will not appear, leaving you with a generic "Couldn't authenticate" error because the app timed out waiting for a cryptographic challenge response. Ensure your default browser is Microsoft Edge or Google Chrome, and that the WebView2 runtime component is fully updated on your machine.8
Furthermore, if you are using SAML for authentication, ensure you do not specify that a password is required using the RequestedAuthnContext element.8 Doing so breaks the passwordless flow and causes Office apps to throw credentials errors.
Structured FAQ
To wrap up the technical deep dive, here are concise answers to the five most common questions we have been asked in the Collab365 community regarding this authentication error.
1. Why does this error only happen on some specific SharePoint folders? This is almost always due to unique permissions or sensitivity labels.27 If a folder has inheritance broken, or if the files within it are tagged with an encrypted sensitivity label (especially ones involving Double Key Encryption), the Excel desktop app may fail to process the rights management.27 This results in a silent authentication drop when attempting to load the data.
2. Does my VPN cause the "Couldn't Authenticate" error? Yes, it absolutely can.33 If you are using a VPN to access a client network, the IP change can trigger an Entra ID Conditional Access policy.6 If a CA policy requires a "Trusted Location" and your VPN IP address is not on that strict whitelist, Entra will silently block the desktop app's token refresh.6 Check the Entra sign-in logs for blocks tied specifically to IP addresses.
3. Will uninstalling and reinstalling Office fix the issue? Rarely. Uninstalling the Office suite does not inherently clear the Windows Web Account Manager (WAM) cache or the Entra broker plugin. You will spend an hour reinstalling 5GB of software only to find the exact same error waiting for you.3 This is because the stale token is still sitting in %LocalAppData%\Microsoft\IdentityCache.3 Always clear the cache manually first before considering a reinstall.
4. I cleared my credentials, but Excel auto-logs me right back in. Why? This happens when your machine is registered to an Entra ID tenant at the Windows operating system level. Go to Windows Settings > Accounts > Access work or school.3 If your client's account is listed there, Windows will aggressively push that identity into all Microsoft 365 apps to ensure SSO. You must disconnect the account there to stop the auto-login loop.
5. How do I prevent this from happening in the future? Stop using the same Windows profile and standard browser tabs for multiple clients. Adopt strict operational isolation. Set up a dedicated Microsoft Edge Profile for each client tenant.16 When you need to do work for Client A, only open the Client A browser profile, and launch files directly from SharePoint into the desktop app from there.
Conclusion and Next Steps
The "We couldn't authenticate with the credentials provided" error is a modern symptom of managing legacy desktop applications in a cloud-first, zero-trust world. As Microsoft tightens the screws with deep Copilot integration and mandatory passwordless passkeys in 2026, proper credential hygiene is no longer optional for system administrators.
If you have followed this guide step-by-step, you should now have a working, stable connection to your SharePoint data. To confirm the fix is permanent, we highly recommend testing your Power Query or SharePoint link on a completely clean machine, or within a freshly created Windows user profile. If the connection works flawlessly on a clean profile but fails on your main profile, you have absolute proof that a hidden cached token is the culprit. Documenting your specific tenant architecture today will save you hours of troubleshooting tomorrow.
The Microsoft sphere is constantly evolving, and keeping up with undocumented quirks is a demanding task. Right now, someone in your industry is quietly becoming irreplaceable by mastering these exact skills. Collab365 Spaces puts you on the right side of that gap with daily intelligence, real research, and practical solutions built for your role.
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