Hi @lydon109 • Thank you for reaching out.
From your question, I understood that you want to convert the synced users to cloud-only users and retain their existing synced passwords.
You can use the Set-MsolDirSyncEnabled PowerShell cmdlet as mentioned below, which will convert your synched users to cloud-only, retain the current passwords and stop the synchronization as well.
Set-MsolDirSyncEnabled -EnableDirsync $false
Note: It may take up to 72 hours to complete deactivation once you have disabled DirSync through this cmdlet. The time depends on the number of objects that are in your cloud service subscription account. If the number of objects is less, it may complete within minutes as well. You cannot cancel the disable action. It will need to complete before you can take any other action, including re-enabling of DirSync. If you choose to re-enable DirSync, full synchronization of your synced objects will happen. This may take a considerable time depending on the number of objects in your Active Directory.
Read more: Turn off directory synchronization for Microsoft 365
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