Office 365 Azure AD Connect - Password Sync

We have a server 2008 R2 DC and are trying to sync the local passwords with the passwords of Office 365 accounts.  I've installed Azure AD Connect and configured it.  In Office 365 it shows the directory and passwords as having synced but all users Sync Type is listed as In Cloud and the passwords still haven't synced.  I've successfully done this with a different company can not get it to work here.
Is there any way to get useful logging information from the Azure AD Connect software?
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In order to troubleshoot the issue follow the instructions in the following atricle:

No passwords are synchronized: troubleshoot by using the troubleshooting task

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Vasil Michev (MVP)Commented:
If the users were created in O365 *before* you installed AAD Connect, you need to "link" them to the on-premises users. You have two options:

1) Soft match, as detailed here:
2) Hard match, as detailed here:
Aaron GuilmetteTechnology Solutions ProfessionalCommented:
If the account used to configure the AAD Connect AD connector a domain or enterprise admin, you must delegate the "Replicating Directory Changes" and "Replicating Directory Changes All" permissions.

I wrote a tool and have it published on the TN gallery for exactly this purpose:
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