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OnPremise Dynamics 365 (CRM) to connect to Office 365 Exchange (Online). "Unable to connect to the remote server. Process Failed."

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I have the hybrid connector however when I run the Powershell Script Function ConfigureCRMServerSideSync.ps1 and record all the parameters I end up with an error "Unable to connect to the remote server. Process Failed."  However on the same machine I can load the Exchange Online Service EXOPSSession management tool so Azure is certainly connectable. 

The platform is Dynamics 365 December Update running on Server 2012R2.


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