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Goal is to convert individual accounts from on-premise to cloud accounts and maintain e-mail and onedrive. Post change account to cloud only when attempt change password receive msg "You cannot reset passwords for user accounts that are synced with your Active Directory and have a federated domain."
Is this a specific user or multiple users?
attempts to change -ImmutableId property to "$null" or "" not successful
Will be multiple users converted to cloud from AD, but most likely 1 at a time. Using move to non synching OU process to convert users.
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Just checking in to see if below information was helpful ( reference: https://merill.net/2019/06/update-the-azure-ad-password-of-a-federated-user/ )
If you have any further updates on this issue, please feel free to post back.
Will test the password change in a bit. Had to restore the account in A/D and resynching with cloud again, but will check to see if that does allow password change. The changing of the password is part 2 of this problem. It was not clear in problem posting, but the primary issue is the Active Directory properties are staying in place, domain is Federated. Need to remove the AD domain properties from the converted account so will allow logon without SSO. The domain properties remaining attached to the account is preventing the password change process.
No go. Unable to change UPN
Maybe this one helps.
https://merill.net/2019/06/update-the-azure-ad-password-of-a-federated-user/
--please don't forget to upvote and Accept as answer if the reply is helpful--
Will give this a shot in AM and advise. Have a case open with Micro as well. Appreciate it
Sounds good, please don't forget to close up the thread by 
No go. Unable to change UPN. Error Message: The domain portion of the userPrincipalName property is invalid. You must use one of the verified domain names in your organization
This one can be closed out. Our primary domain is Federated and have learned once change the UPN to Managed domain @keyman .onmicrosoft.com are unable to re-assign the Federated domain UPN. Appreciate the reference, just doesn't work with Federated domains