To create and Odoo user without an email do the following.
Create the user in Odoo (Settings - Users & Companies on top - Users - New)
Assign required permissions and enter their Azure UPN as their login name
Save the user and then click into user properties
Click Sent Password Reset Instructions on top
This will add the password reset link to the top of the page
Copy the link to a private window and then click the Azure button on that page
Sign in with the user's info and they'll be all set to use SSO