The Dynamics 365 Team Members license is a named user subscription designed for users whose jobs aren’t necessarily tied to a function but who still need to use the basic functionality of a line-of-business system. This license gives users lightweight access through designated scenarios built into the Team Member experience.
Microsoft Introduced a new Team member license terms on October 2018 by reducing the custom entities usage to max 15 and also removed few rights on Account entity records. All Team Member licenses subscribed after April 2019 will directly fall into the new license terms and team member licenses subscribed prior to October 2018 get affected after June 2020.
Microsoft released new Team member application as part of 2020 April 1 wave 1 release. Now preview is available to try. The user having team member license is allowed to access CRM only through the Out of the Box team member applications. The team member applications can be customized to satisfy the business needs. But prior to the customization we must consider the new license terms.