365 or Azure Portal Passwords are not able to be reset or reenabled after upgrade to Connect AD V2.2

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Has anyone experienced this issue?

I support IT an agency with approximately 150 employees and about 100 workstations plus mobile devices on a Windows Active Directory network.

I am currently on Day 3 of a "Severity A" Microsoft Azure support ticket in which passwords on accounts in our hybrid environment cannot be reset if they are locked out or expire. Our network is slowly becoming disabled as email accounts are locked out and become inaccessible as well as log in access to our company SharePoint Site.

  1. Our original AD Connect V1.5 installed on a 2012R2 server (which was configured for one way sync up to Azure) was depreciated and stopped working last week.
  2. Exported a configuration file from the orginal AD connect 1.5 and used it to install the latest version V2.2 on another Server 2019 Domain controller.
  3. A few initial issues with syncing were resolved. The AD Connect sync service manager shows the service is syncing successfully in all phases both with local domain and Azure service.
  4. No errors in the on-Premises Domain Controller event viewer
  5. Azure Portal Admin Dash show service to be healthy.
  6. New AD accounts created on Premise sync quickly to Azure and appear available in the active users list and are available to have license and email assigned to them. .. but cannot access the account( ie log into 365 or the Azure Portal, etc.) with the password assigned when the account was created. Reset the password, using forgot my password indicate the password is reset successfully as well as get a notification in the Admin email that the password was reset successfully for the account, BUT THE PASSWORD DOES NOT WORK!
  7. Microsoft Azure Support has been working on this issue since Wednesday of this week. Its been a rollercoaster. An Azure Engineer will work on the issue for a couple of hours then his shift ends up saying he is transferring the ticket to another Engineer and then nothing for 10 12 hours. Of course no phone number to call only email. I write a request to the ticket every hour for an update to try to get a response.
     I have never had this kind of experince with MS Support.

Any suggestions or experience anything this issue?

Microsoft Entra ID
Microsoft Entra ID
A Microsoft Entra identity service that provides identity management and access control capabilities. Replaces Azure Active Directory.
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