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Hi @somebody! External contacts are your company contacts that are not Zoom Phone subscribers. When these contacts are added to the contacts directory, they become accessible to Zoom Applications. I don't believe you can disable it unless those contacts become Zoom Phone subscribers.
This article also has some useful information about external contacts: https://support.zoom.us/hc/en-us/articles/360037050092-Creating-a-shared-directory-of-external-conta...
Hope this helps!