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Can't login to Office365 portal in a hybrid Exchange setup if Exchange Online license is enabled and mailbox is not migrated.

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Our setup:

  • ADFS, SSO, DirSync
  • Hybrid Exchange Online deployment with Exchange 2010 SP3 on-premise.
  • Lync 2010 On-Premise, soon to be online.
  • AD Sign in Assistant installed
  • Office 365 E3 licenses.

 

We are in pilot stages of Office 365. Two pilot user profiles:

Profile 1: All O365 licenses enabled for synched AD account - mailbox migrated to Exchange Online.

Profile 2: All O365 licenses enabled for synched AD account - mailbox still on-premise. User is piloting testing SharePoint Online services but will eventually have their mailboxes migrated.

 

Issue:

Profile 1 user has no issue. But selected profile 2 users has issues when signing in to portal.microsoftonline.com. Once the user enters the SSO credentials they are redirected to ADFS as expected then redirected to https://outlook.office365.com/owa/auth/errorfe.aspx........ instead of the SharePoint online portal https://<domain>-my.sharepoint.com/personal/.... Exchange Online Error page shows "Something Went wrong.....ADUserNotFoundException". XE-FE server value changes with various attempts so error is not a local cache issue. It appears the login process keeps looping back to the OWA error page and therefore SharePoint drop down menus can't be accessed.

 

Solutions tried

I've tried clearing cache, inprivate browsing, different browsers and still same issue. Also tried different PCs and the login issue follows the user. Because of these results,  I have ruled out any local cache issues. OWA generated error page goes away when I disable the "Exchange Online" license of the affected user. About 3 users so far of 20+ so not everyone is affected. If this is normal behavior why is it not affecting all users with profile 2 setup.

 

Anyone else experiencing this issue with the same setup? MS Support says it's localized and they can't do anything about it since it's not affecting everyone. Any suggestions on where else to check?

 


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