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After having played around with Azure AD Connect in my testbed I decided to remove it and revert back to a 100% cloud environment.

I therefor uninstalled all the local Azure AD Connect components from my on-premises domain controller. Then I stopped synchronization by using the MSonline powershell module.

PS> Install-Module -Name MSonline
PS> Connect-MSolservice
PS> Set-MsoldDirSyncEnabled -EnableDirSync $false

After having issued the above commands the status switched to: Not Installed and the Last Sync status now shows Sync has never run. Also (Get-MSOLCompanyInformation).DirectorySynchronizationEnabled now returns false, so everything regarding the sync service should be turned off now.

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However when clicking on Seamless single sign-on my local domain still shows up:

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Why is that and how can I entirely remove it?

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I solved it by reinstalling Azure AD Connect and disabled SSO through the configuration wizard. Then I issued Set-MsoldDirSyncEnabled -EnableDirSync $false again to disable the AD Sync one more time. And everything is fine.

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