Hi @auspal ,
If you need to restore the specific users, it is a requirement to recreate the passwords. I'm not aware of a third party tool that would remove this dependency.
Otherwise if you have Password Hash Sync (PHS) enabled, users will directly authenticate from Entra ID and you don't need to perform any additional steps for the password to be synchronized for the cloud-only users. You could configure selective password hash sync to exclude specific users from password hash sync if you needed to.