The Challenge/Response (C/R) function can be enabled or disabled in 2 places separately, 

Disable/Enable Challenge/Response Function in the MobileID App

To disable the C/R function in the MobileID app, you need to change the MobileID product settings in the DualShield MFA server.

In the DualShield Admin Console, navigate to "Authentication \ Products",  click on the context menu icon of MobileID and select "Edit" from the menu.

Remove the "Challenge & Response" option from the Functions list, and save the change.

Please note that this change will not affect existing MobileID tokens that have already been installed on users' devices.

Disable/Enable Challenge/Response Function in User Verification

To disable MobileID token so that it cannot be used as a challenge/response method in the user verification process, you need to change the MobileID policy in the DualShield MFa server.

In the DualShield Admin Console, navigate to "Administration \ Policies". Find the MobileID policy and edit it

Disable the "Enable Challenge & Response" option, and save the change.