The process adopted was:
Set-ADFSProperties -AutoCertificateRollover $true
Update-AdfsCertificate -CertificateType Token-Decrypting -Urgent
Update-AdfsCertificate -CertificateType Token-Signing -Urgent
Set-ADFSProperties -AutoCertificateRollover $false
O365 didn't update. So, ended up doing Update-MSOLFederatedDomain –DomainName <domain>.
One thing to note is, it asked "-SupportMultipleDomain" be used with the update-msolfederateddomain command. Apparently, this needs to be done by someone who has admin access to azure ad and also on prem environment.
After that O365 was in sync with ADFS.
Thank you for your tips and inputs. Appreciate it.