Here is detailed information for you:
- Cross tenant migration from Source Tenant to Target Tenant. (After this step, mailboxes will use the target tenant default domain temporarily, such as domain.onmicrosoft.com)
- Remove domain name from the source tenant, then verify this domain on target domain. Then you will could use the xyz.com on target tenant.
- If you want to sync those migrated mailboxes account to local AD, you could follow this article: A user has an account in Office 365 but not in local Active Directory
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