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Mailbox setup not working

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After configuring Server Side Sync and testing a mailbox I get the below error. The user that was test has a Dynamics 365 licence assigned to them. What could be causing this issue?

mail can't be sent for the mailbox "Test Message" because the associated user doesn't have a valid Microsoft Dynamics 365 license. The mailbox didn't synchronize. A notification about this is posted on the alerts wall for the owner of the email server profile


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