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Can a Limited/Transaction User (LTU) be converted to a Full license user (and vice versa) without recreating the user, assuming the license limit allows it?

Answer

Yes, and it's driven purely by what permission sets are assigned, not a separate flag you toggle: assigning the user any non-LTU permission set automatically upgrades them to a Full license user. Conversely, revoking all non-LTU permission sets and leaving only LTU-eligible permission set(s) converts a Full user back down to LTU.

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