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Based on the specific error signature (timeout at 00:00:07.9) and your confirmation that the MRSProxy bindings are missing from the web.config file, I would like to share some information from my research and my understanding that I hope will be helpful that
Even though Get-WebServicesVirtualDirectory shows MRSProxyEnabled as True, the underlying configuration file (web.config) does not contain the necessary WCF (Windows Communication Foundation) bindings. Without these specific bindings, the server reverts to the default web connection timeout (approx. 8 seconds) rather than the extended timeout required for mailbox moves.
This behavior frequently occurs after installing an Exchange Cumulative Update (CU) or Security Update (SU), which can overwrite configuration files and revert them to a default state.
You can try to force Exchange to regenerate the missing XML blocks in the web.config file and try to run
Disable MRS Proxy:
Get-WebServicesVirtualDirectory | Set-WebServicesVirtualDirectory -MRSProxyEnabled $false
Reset IIS: (Required to unload the current config
iisreset
Re-enable MRS Proxy: (This triggers the rewrite of the web.config)
Get-WebServicesVirtualDirectory | Set-WebServicesVirtualDirectory -MRSProxyEnabled $true
Reset IIS:
iisreset
After running these commands, if you open the web.config file at C:\Program Files\Microsoft\Exchange Server\V15\ClientAccess\exchweb\EWS, you should now see a section named <binding name="MRSProxyBinding">. The migration should now proceed past the 7-second mark.
You can see the following Microsoft Learn article regarding enabling the proxy and how updates affect configuration files: Move mailboxes between on-premises and Exchange Online organizations in hybrid deployments
Additionally, please note that because Exchange Server 2016 is no longer supported as of October 2025. Your current installation is running a 2022 build, which leaves the environment vulnerable to newer threats. I recommend prioritizing this move to Exchange Online to ensure your data is protected by modern security standards.
I hope this information proves helpful!
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