Accounts made in o365 can't access legacy public folders - Migrated through 2010/2013 Hybrid can access

We've added two 2013 hybrid servers to our existing 2010 environment.  Added the CAS role to all 2010 mailbox servers per ( https://technet.microsoft.com/en-us/library/dn249373%28v=exchg.150%29.aspx ) and currently have public folders (located on our
2010 mailbox servers) working in Outlook client for users whose mailboxes have been migrated from on-prem 2010 to o365.  The problem is when we create a new user in o365, that user CAN see that we have public folders via Outlook client, but when we expand
the public folder list a credential window pops up and will not accept any set of credentials (even those of working hybrid migrated accounts).
We are following this method when creating new o365 accounts:
1) Make a user in AD
2) Dirsync the user
3) License the user for exchange
4) Run on on-prem mailbox server via Exchange Management Shell: Enable-RemoteMailbox "[email protected]" -RemoteRoutingAddress "[email protected]"
5) In o365 Remote Exchange Powershell run: Get-Mailbox -identity "[email protected]" |fl Identity,ExchangeGUID
6) Copy ExchangeGUID
7) Back on on-prem mailbox server via Exchange Management Shell: Set-RemoteMailbox "[email protected]" -ExchangeGUID <paste GUID here>
8) Dirsync the user again
I've compared two Remote User Mailboxes, ones that were migrated via Hybrid, and ones that were created in o365 and the settings look identical outside of the attribute "RemoteRecipientType" is set to Migrated vs ProvisionMailbox.  I'm not
sure what else the difference in these accounts could possibly be that would be causing this credential failure.
Any thoughts would be appreciated.

Hi,
Please do the following steps to create an Exchange Online mailbox in your Hybrid environment:
Method 1: Create a remote mailbox for an existing user.
If you already have created a user in Active Directory, and the user has already been synced to online with license, we can give that user a mailbox in Exchange Online by using the Exchange Management Shell cmdlet Enable-RemoteMailbox on
your on-premise Exchange server:
Get-User “User1” | Enable-RemoteMailbox
Then the mailbox is enabled with an Exchange Online mailbox. We can check the mailbox by running the following command in On-premise Exchange server:
Get-RemoteMailbox “Test1” | FL *address*
Method 2: Directly create a new remote mailbox.
1. Create the remote mailbox in On-premise Exchange server by running:
$Credentials = Get-Credential
New-RemoteMailbox -Name "Test2" -Password $Credentials.Password -UserPrincipalName
[email protected]
2. Launch dirsync and assign a license to the newly created user with Office 365 account.
Then Test2 can sign in, using his on premises credentials, and open his online mailbox.
For more information about the remote mailbox, please refer to:
http://blogs.technet.com/b/ilvancri/archive/2011/08/24/exchange-online-exchange-on-premises-shared-namespace-how-about-mail-routing.aspx
Regards,
Please remember to mark the replies as answers if they help, and unmark the answers if they provide no help. If you have feedback for TechNet Support, contact [email protected]
Winnie Liang
TechNet Community Support

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