Hybrid Lync on-prem, Office 365 exchange deployment.

Good afternoon all,
  I have received invaluable advice and support from these forums but for the last month have been scouring them for possible fixes to my problem as it stands now.
I am having an issue with getting the call log and calendar to display on a CX700 (4.0.7577.4420) Lync Phone Edition device.  We have on-prem Lync servers but use Office 365 hosted exchange environment.
 I receive the error "Connection to Microsoft Exchange is unavailable due to invalid network credentials.  For details, tap on Notifications seen at the top of your phone."   Voicemail works and Unified Messaging is enabled.  I
do see my Lync messages and calls updated in Conversation History.
I am using a USB cable to connect to the phone and enter my Lync credentials on my PC to login on the phone which of course differ from my Office 365 credentials.
I have verified the autodiscover records exist.
Any help would be greatly appreciated.  Thanks in advance. 

Were your SIP domain the same with SMTP domain?
Please check if desktop client have the same problem.
Check if account with the same credential for Lync and Exchange has the same issue.
Check if this issue only happened on CX700 Lync Phone Edition device.
For further troubleshooting, try to collect log file and sent the log.
You can locate the log file under the path like
\\fileserver\LyncShare\*WebServices*\DeviceUpdateLogs\... on Lync Server Front End Server.
Lisa Zheng
TechNet Community Support

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