We broke the Matrix:
I love the Idea behind Continues Access Evaluation aka (CAE) and we have it been using for quite a while. Because it improves the situation on Apps that support it around TOCTOU significant.
Now I came across a Problem around Named Locations:
First what is CAE:
CAE introduces real-time enforcement of account lifecycle events and policies, including:
So let’s go closer to the “User location change” this is usually based on the IP of Users and that is where Named Location come into play.
First have a closer look on Named Location conditions:
Where is now the problem: 
We got tasked with blocking around ±5000 IP Ranges within CIDR format due to some geo political topics. 
First we actually played around with bumping 5000 IP Ranges into one Named Location which worked to our supprise.
But now come to the Issue.
We splitted the ±5250 IP’s in 3 Named Location with each ±1750. Remember the supported scenario statement from above.
We were testing this in Report Only Mode for a long time and had exactly 0 Problems with it.
So we activated the policy, and everything was still working as expected. After some time we got reports from Windows Outlook Clients having issues to download the Offline Address Book. We first didn’t see the conincidence because everything else continued to work just normal.

Now at the end it turned out the Workload Exchange Online has issues with large block lists in combination with CAE.
Currently you have only 2 choices: