This may occur if the Servers internet settings are configured to use a proxy server which requires authentication. The API's used to communicate with the EWS service for Office 365 will by default use the IE proxy settings. However Recovery Manager for Exchange is not passing credentials to authenticate with the proxy server.
Workaround:
Disable the Proxy server settings in Internet Explorer and ensure the Recovery Manager server is able to bypass the proxy server for an internet connection.
Status:
Enhancement request number PT70743148 has been submitted to Development for consideration in a future release of Recovery Manager for Exchange
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