@Emory Thank you for reaching out to us, for the cloud environment, there is no way we can have password hash sync, this option is meant for hybrid users (where users are synced from on-premise), however reset password is required - https://learn.microsoft.com/en-us/azure/active-directory-domain-services/troubleshoot-sign-in#:~:text=Cloud%2Donly%20environments%20with%20no%20on%2Dpremises%20synchronization
Let me know if the password reset/wait for sometime and try to repro the issue, if still persist let me know we can connect offline to discuss further on the same.