Hi Keith,
After you disable password sync, the passwords for the Office 365 service will not be cleared, and the password you changed from the local AD will not be synced to Office 365, either. Although the user account in the local AD is the same as the Office 365, the passwords are different. So if you want to change the password for the Office 365 service, you need to go to Office 365 to change it. If I have misunderstood it, please let me know.
For the end users, please follow the steps below to change their password:
1. Login to Office 365 OWA.
2. Click the gear, and then Click "Office 365 settings".
3. Click "Change your password" under "Office 365 settings".
For the administrator, you can perform the following steps to reset the password for the Office 365 user:
1. Login to Office 365 Portal with an administrator account.
2. Go to users and groups> select a user account > Reset Passwords.
Thanks,
Edward Qu