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