Auto-approval for shared key access not working for new users

Auto-approval for shared key access not working for new users

Hello,

I'm an admin of a Zoho Vault organization (34 active users, ZOHO identity provider).

I have the "Auto-approval for shared key access" setting enabled in Settings → Fine-Grained Controls → Global, but it does not work as expected.

The problem: When I add a new user to the organization and the user completes their account setup (status becomes "Active"), their Sharing Status shows "Approve" instead of being automatically approved. I still have to manually go to Settings → Users and click "Approve" for each user individually before they can access shared passwords.

Expected behavior: With "Auto-approval for shared key access" enabled, the sharing key should be approved automatically once the user logs in and sets up their master password — without requiring any manual action from the admin.

Current example: User Daniil Kulikovskiy — Status: Active, Sharing Status: "Approve" (waiting for manual approval), despite the auto-approval setting being turned on.

Steps I've already tried: — Verified the Auto-approval toggle is ON in Fine-Grained Controls (Global tab) — The setting has been enabled for some time, yet new users still require manual approval

What I need: Either fix the auto-approval mechanism so it works as described, or advise on additional configuration steps required to eliminate the manual approval step.

Thank you.