Create a custom role in Microsoft Entra that grants the ability to consent for delegated permissions and application permissions, including most application permissions for Microsoft Graph, except for a few sensitive permissions. Azure AD Graph permissions are NOT included.

Create-MgGraphCustomRole-PrivilegedApplicationConsentAdministrator.ps1

<#PSScriptInfo
.VERSION 1.1.0
.GUID a17ec91c-0f75-42ab-b4ef-8766c1a25fca
.AUTHOR Julian Pawlowski
.COMPANYNAME Julian Pawlowski
.COPYRIGHT © 2024 Julian Pawlowski
.TAGS
.LICENSEURI https://opensource.org/license/MIT
.PROJECTURI https://gist.github.com/jpawlowski/ca1bde7e979f367e8007b056bc032b6e
.ICONURI
.EXTERNALMODULEDEPENDENCIES 'Microsoft.Graph.Identity.SignIns','Microsoft.Graph.Identity.Governance','Microsoft.Graph.Applications'
.REQUIREDSCRIPTS
.EXTERNALSCRIPTDEPENDENCIES
.RELEASENOTES
    Version 1.1.0 (2024-05-12)
    - Add directory role assignment validation.

    Version 1.0.1 (2024-05-10)
    - Add module dependencies.

    Version 1.0.0 (2024-05-03)
    - Initial release.
#>

<#
.SYNOPSIS
    Create a custom role in Microsoft Entra that grants the ability to consent for delegated permissions and application permissions, including most application permissions for Microsoft Graph, except for a few sensitive permissions. Azure AD Graph permissions are NOT included.  

.DESCRIPTION
    This script creates a custom role in Microsoft Entra that grants the ability to consent for delegated permissions and application permissions, including most application permissions for Microsoft Graph, except for a few sensitive permissions. Azure AD Graph permissions are NOT included. Note that to approve Microsoft Graph application permissions, Microsoft Entra roles Cloud Application Administrator and Application Administrator MUST NOT be active as otherwise, their exclusion policy will take precedence.
#>

#Requires -Modules @{ ModuleName = 'Microsoft.Graph.Identity.SignIns'; ModuleVersion = '2.0.0' }
#Requires -Modules @{ ModuleName = 'Microsoft.Graph.Identity.Governance'; ModuleVersion = '2.0.0' }
#Requires -Modules @{ ModuleName = 'Microsoft.Graph.Applications'; ModuleVersion = '2.0.0' }

Connect-MgGraph -ContextScope Process -Scopes @(
    'Application.Read.All',
    'DelegatedPermissionGrant.Read.All',
    'RoleManagement.ReadWrite.Directory',
    'Policy.ReadWrite.PermissionGrant'
)

#region Validate active directory role assignment
$requiredDirectoryRoles = New-Object System.Collections.ArrayList # Use an ArrayList to avoid array flattening

# Either of the following roles is required
$null = $requiredDirectoryRoles.Add(@(
        'Privileged Role Administrator',
        'Global Administrator'
    ))

$directoryRoles = Get-MgDirectoryRole -ErrorAction Stop | Group-Object -Property DisplayName -AsHashTable -AsString
$hasActiveRoleAssignment = $false

for ($i = 0; $i -lt $requiredDirectoryRoles.Count; $i++) {
    $roleGroup = $requiredDirectoryRoles[$i]
    $rolesToCheck = if ($roleGroup -is [array]) { $roleGroup } else { @($roleGroup) }
    $hasActiveRole = $false

    foreach ($role in $rolesToCheck) {
        Write-Debug "Checking if $($CurrentUser.UserPrincipalName) has an active assignment for the directory role '$role'."
        $directoryRole = $directoryRoles[$role]
        if ($null -ne $directoryRole -and (Get-MgDirectoryRoleMember -DirectoryRoleId $directoryRole.Id).Id -contains $CurrentUser.Id) {
            $hasActiveRole = $true
            Write-Verbose "$($CurrentUser.UserPrincipalName) HAS an active assignment for the directory role '$role'."
            break
        }
    }

    if (-not $hasActiveRole) {
        Write-Debug "$($CurrentUser.UserPrincipalName) DOES NOT HAVE an active assignment for ANY of the following directory roles: $($rolesToCheck -join ', ')."
        break
    }
    elseif ($i -eq $requiredDirectoryRoles.Count - 1) {
        $hasActiveRoleAssignment = $true
    }
}

if (-not $hasActiveRoleAssignment) {
    $roleRequirements = $requiredDirectoryRoles | ForEach-Object {
        if ($_ -is [array]) {
            "at least one of the following roles: " + ($_ -join ', ')
        }
        else {
            "'$_'"
        }
    }
    $roleRequirements = $roleRequirements -join ' AND '
    Write-Error "$($CurrentUser.UserPrincipalName) does not have an active assignment for all required directory roles. The user must have an active assignment for $roleRequirements."
    exit 1
}
#endregion

#region Create a new permission grant policy
$PermissionGrantPolicy = New-MgPolicyPermissionGrantPolicy -Id 'custom-appconsent-admin' -Description 'Permissions consentable by Privileged Application Consent Administrators.' -DisplayName 'Custom App Consent Admin Policy' -ErrorAction Stop

# Include all delegated and application permissions
New-MgPolicyPermissionGrantPolicyInclude -PermissionGrantPolicyId $PermissionGrantPolicy.Id -PermissionType 'delegated' -PermissionClassification 'all' -ClientApplicationsFromVerifiedPublisherOnly:$false
New-MgPolicyPermissionGrantPolicyInclude -PermissionGrantPolicyId $PermissionGrantPolicy.Id -PermissionType 'application' -PermissionClassification 'all' -ClientApplicationsFromVerifiedPublisherOnly:$false

# Exclude all Azure Graph application permissions
New-MgPolicyPermissionGrantPolicyExclude -PermissionGrantPolicyId $PermissionGrantPolicy.Id -ResourceApplication '00000002-0000-0000-c000-000000000000' -PermissionType 'application'
#endregion

#region Exclude specific application permissions from Microsoft Graph
$ServicePrincipal = Get-MgServicePrincipal -Filter "AppId eq '00000003-0000-0000-c000-000000000000'" -ErrorAction Stop
$ExcludedAppRoleValues = @(
    'AdministrativeUnit.ReadWrite.All'
    'Application.ReadWrite.All'
    'AppRoleAssignment.ReadWrite.All'
    'AuthenticationContext.ReadWrite.All'
    'BillingConfiguration.ReadWrite.All'
    'ConsentRequest.ReadWrite.All'
    'CrossTenantUserProfileSharing.ReadWrite.All'
    'CustomAuthenticationExtension.ReadWrite.All'
    'DelegatedAdminRelationship.ReadWrite.All'
    'DelegatedPermissionGrant.ReadWrite.All'
    'Device.ReadWrite.All'
    'DeviceManagementApps.ReadWrite.All'
    'DeviceManagementConfiguration.ReadWrite.All'
    'DeviceManagementManagedDevices.PrivilegedOperations.All'
    'DeviceManagementManagedDevices.ReadWrite.All'
    'DeviceManagementRBAC.ReadWrite.All'
    'DeviceManagementServiceConfig.ReadWrite.All'
    'Directory.ReadWrite.All'
    'DirectoryRecommendations.ReadWrite.All'
    'Domain.ReadWrite.All'
    'eDiscovery.ReadWrite.All'
    'ExternalConnection.ReadWrite.All'
    'ExternalConnection.ReadWrite.OwnedBy'
    'Files.ReadWrite.All'
    'Group.ReadWrite.All'
    'GroupMember.ReadWrite.All'
    'IdentityProvider.ReadWrite.All'
    'IdentityRiskEvent.ReadWrite.All'
    'IdentityRiskyServicePrincipal.ReadWrite.All'
    'IdentityRiskyUser.ReadWrite.All'
    'MultiTenantOrganization.ReadWrite.All'
    'OnPremDirectorySynchronization.ReadWrite.All'
    'OnPremisesPublishingProfiles.ReadWrite.All'
    'Organization.ReadWrite.All'
    'OrganizationalBranding.ReadWrite.All'
    'Policy.ReadWrite.AccessReview'
    'Policy.ReadWrite.ApplicationConfiguration'
    'Policy.ReadWrite.AuthenticationFlows'
    'Policy.ReadWrite.AuthenticationMethod'
    'Policy.ReadWrite.Authorization'
    'Policy.ReadWrite.ConditionalAccess'
    'Policy.ReadWrite.ConsentRequest'
    'Policy.ReadWrite.CrossTenantAccess'
    'Policy.ReadWrite.ExternalIdentities'
    'Policy.ReadWrite.FeatureRollout'
    'Policy.ReadWrite.FedTokenValidation'
    'Policy.ReadWrite.IdentityProtection'
    'Policy.ReadWrite.PermissionGrant'
    'Policy.ReadWrite.SecurityDefaults'
    'Policy.ReadWrite.TrustFramework'
    'PrivilegedAccess.ReadWrite.AzureAD'
    'PrivilegedAccess.ReadWrite.AzureADGroup'
    'PrivilegedAccess.ReadWrite.AzureResources'
    'PrivilegedAssignmentSchedule.ReadWrite.AzureADGroup'
    'PrivilegedEligibilitySchedule.ReadWrite.AzureADGroup'
    'PublicKeyInfrastructure.ReadWrite.All'
    'RoleAssignmentSchedule.ReadWrite.Directory'
    'RoleEligibilitySchedule.ReadWrite.Directory'
    'RoleManagement.ReadWrite.CloudPC'
    'RoleManagement.ReadWrite.Directory'
    'RoleManagement.ReadWrite.Exchange'
    'RoleManagementAlert.ReadWrite.Directory'
    'RoleManagementPolicy.ReadWrite.AzureADGroup'
    'RoleManagementPolicy.ReadWrite.Directory'
    'SharePointTenantSettings.ReadWrite.All'
    'Synchronization.ReadWrite.All'
    'TrustFrameworkKeySet.ReadWrite.All'
    'User.EnableDisableAccount.All'
    'User.Export.All'
    'User.Invite.All'
    'User.ManageIdentities.All'
    'User.ReadWrite.All'
    'UserAuthenticationMethod.ReadWrite.All'
)

# Convert app role values to app role IDs
$ExcludedPermissions = $ExcludedAppRoleValues | ForEach-Object {
    $item = $_
    $roles = $ServicePrincipal.AppRoles | Where-Object { $_.Value -eq $item }
    
    if ($roles) {
        $roles | ForEach-Object { $_.Id }
    }
    else {
        Write-Error "No matching app role found for value: $item"
    }
}

if ($ExcludedPermissions.Count -gt 100) {
    Throw "Excluded permissions count exceeds 100"
}
else {
    $params = @{
        PermissionType      = 'application'
        ResourceApplication = $ServicePrincipal.AppId
        Permissions         = [array]$ExcludedPermissions
        ErrorAction         = 'Stop'
    }
    New-MgPolicyPermissionGrantPolicyExclude -PermissionGrantPolicyId $PermissionGrantPolicy.Id -BodyParameter $params
}
#endregion

#region Create new custom admin role
$params = @{
    DisplayName     = 'Privileged Application Consent Administrator'
    Description     = 'This role grants the ability to consent for delegated permissions and application permissions, including most application permissions for Microsoft Graph, except for a few sensitive permissions. Azure AD Graph permissions are NOT included. Note that to approve Microsoft Graph application permissions, Microsoft Entra roles Cloud Application Administrator and Application Administrator MUST NOT be active as otherwise, their exclusion policy will take precedence.'
    TemplateId      = (New-Guid).Guid
    IsEnabled       = $true
    RolePermissions = @(
        @{
            AllowedResourceActions = @(
                'microsoft.directory/servicePrincipals/credentials/update'
                'microsoft.directory/servicePrincipals/managePermissionGrantsForAll.' + $PermissionGrantPolicy.Id
            )
        }
    )
    ErrorAction     = 'Stop'
}
$customAdmin = New-MgRoleManagementDirectoryRoleDefinition @params
#endregion