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O365 Troubleshooting: Issues Regarding Password Never Expires

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There are a couple of things you need to worry about when setting users to 'Password Never Expires' in Office 365.

One of these is the interaction with DirSync accounts - where the  'Password Never Expires' doesn't truly work anymore.

 But if you have set this on a tenant before that change by Microsoft then you may also run into another issue.

Microsoft has recently made some updates and users that have 'Password Never Expires' set to $True will no longer be able to change their password via OWA/portal.

The solution is rather simple by changing the account from:

Set-MSOLUser -PasswordNeverExpires $true

Set-MSOLUser -PasswordNeverExpires $false

but you should likely do this on smaller number of users.

If you perform this on a large number of users or the whole tenant you need to be aware that you could have a mass expiration of passwords if they are older than the maximum password age setting.

With regards to the domain password policy; which is different. For that  be aware that it doesn't apply to subdomains.