A cloud-based service included in Microsoft 365, delivering scalable messaging and collaboration features with simplified management and automatic updates.
The Dial tone database is a temporary database for Exchange server, you need to follow this article below to merge dial tone database into a restored database. Then this mailboxes will be a full function mailboxes.
After that, you can migrate mailboxes from Exchange on-premises to Exchange online in many ways: such as hybrid migration, cutover migration.
For more detailed information, you can have a look about those articles:
Ways to migrate multiple email accounts to Microsoft 365 or Office 365
Perform a dial tone recovery
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