Below are common causes for this error:
1.) The source and/or target migration admin accounts provided to ODM on the Configure Connection screen have an invalid username and/or password. The Configure Connections screen does not check for valid credentials and will not provide an error. We would suggest typing the password into Notepad to verify it is correct and copying/pasting the password into ODM.
2.) The source and/or target migration admin accounts provided to ODM on the Configure Connection screen have an expired password. Try logging into the Office 365 Portal with the source and/or target migration admin account(s) to verify you are able to log in.
3,) The source and/or target migration admin accounts provided to ODM do not have the required ApplicationImpersonation rights. ApplicationImpersonation rights are not granted by any default role in Office 365 and will need to be explicitly added. See: How do I grant both the source and target tenant migration admin accounts the required ApplicationImpersonation rights?
4.) Multi-Factor Authentication (MFA) is enabled on either the source or target migration admin account. See: Does ODM support multi-factor authentication for the source and target migration admin accounts?
5.) The source and/or target migration admin are blocked from sign-on within Office 365.
6.) There is a Conditional Access Policy set in the source and/or target Office 365 environment that is blocking the actions that ODM is trying to perform. You will need to exclude the migration admin account and the Quest applications from the conditional access policy in Office 365.
7.) Ensure The MS license is not an E1 but a E3. E1 is like Hotmail. Has none of the Exchange-related stuff the mailbox migration needs.
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