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User passwords set under Active Directory are not syncing with Office 365. i.e. users cannot login to the Office 365 portal with their domain passwords.

The Directory Sync tool is installed on a Server 2008 SP2 domain controller.

All other user attributes appear to be syncing correctly.

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    which version of DirSync are you using? Is it the latest one? Also, while synchronization, have you selected Enable Password Synchronization in the tool wizard? If not so, please do it again. If you have selected and still you face the problem, please provide the event ID in the event viewer. – Hema S Aug 24 '15 at 7:28
  • Latest version of DirSync downloaded this week. Not sure how to tell the version. Enable Password sync was checked. I even re-ran the config to check it again. The only event log I see is: Event ID 6313: The server encountered an unexpected error creating performance counters for management agent "Windows Azure Active Directory Connector". Performance counters will not be available for this management agent. – Ash Aug 27 '15 at 4:50
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You can try forcing a full password sync using powershell.. Open the DirSync PS console (C:\Program Files\Windows Azure Active Directory Sync\DirSyncConfigShell.psc1) and run: Set-FullPasswordSync then Start-OnlineCoexistenceSync

  • Have ran these commands multiple times. Password still won't update/sync. – Ash Aug 27 '15 at 4:50
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Issue is due to the server running SBS Server 2008. I believe that DirSync is not officially supported on SBS 2008 or 2011.

Resolved issue by installing Azure Active Directory Connect on a Server 2012 host that is connected to the same domain. A much better tool to configure that DirSync.

Azure Active Directory Connect is also not supported on SBS 2008 or 2011 either, I think, due to its reliance on PowerShell 3.0 (Windows Management Framework 3.0).

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