Explore self-service password management - Training
learn.microsoft.com/en-gb/training/modules/manage-secure-access-microsoft-365/6-explore-self-service-password-management
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Self-service password reset is only available for Microsoft 365 users with cloud identities that have passwords that aren't linked to the on-premises AD DS. This restriction applies because Microsoft 365 can't synchronize a password back to on-premises AD DS without using other synchronization services.
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