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This error indicates that Synchronization is disabled for your tenant.
You can enable sync for your tenant by following below steps.
- Open Windows PowerShell as administrator.
- Run command "Import-odule MsOnline"
- Run "Install-Module MsOnline"
- Connect-MsolService (Enter the global admin credentials of Azure AD).
- Run command "Get-MsolCompanyInformation"
- In the result you can look for Property "DirectorySynchronizationEnabled". This value should be set to "True"
- If it is set to "False" then you can Run below command to set this to True.
- Set-MsolDirSyncEnabled -EnableDirSync $True
- Once this is done, you can try to configure cloud sync in your environment.
It may take up to 72 hours to complete activation once you have Enable DirSync through this cmdlet.
Let me know if you have any further questions.
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