OKTA group assignment is working but auto provisioning is failing for the first time. But when I retry, it works. Due to which I am not able to login to the application after password setup. Please help.
Regarding Provisioning, there may be a delay from the moment in which you assign one or more users to a group that has the application assigned and the moment in which it is actually going to be created (or updated) in the app. in order to check if provision is properly enabled, please go to your Admin Console -> Applications -> the app for which you want Provisioning enabled -> Provisioning -> Test API Credentials.
If by password setup you are referring to Password Sync (feature that syncs the Okta password with the one in the app), if it's enabled, the Okta password has to pass the Password requirements set up on the SP side.
For further assistance, please open a support case with Okta.
Thank you, Paul Auer Technical Support Engineer | Okta