While setting up Office 365 I ran into an issue with the Active Directory Azure Synchronization¬†tool, at the configuration stage I was presented with the error “Set-CoexistenceConfiguration was unable to modify the source properties. See the event logs for more detailed information”

Windows Azure Active Directory Sync Set CoexistenceConfigureation Error

When looking in the Application event log there was a few messages about a SQL “could not be found in the forest”

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Long story short I have no idea why but I just pressed the retry button and the process completed fine.