Hi
when you enable Password Hash Sync, Active Directory becomes your "source or truth", so any Active Directory passwords that exist for Soft-Matched users in Azure AD will replace any existing Azure AD passwords that are in use.
Password Writeback only works at the time of reset, so all existing passwords are not written back to on-premise AD.
It a tricky one - my advice (depending on the amount of users in the business unit) would be to look at a trial of an AD Self-Service Password Reset tool to allow the users to create new passwords prior to enabling PHS. You should also ensure that any AD Password policies are secure as these will carry forward into Azure AD.
Hope this helps, and good luck.
Thanks
Michael Durkan
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