This is the most common scenario in organizations because it is so easy to set up, and although it does not provide a seamless sign-on experience, users still access Office 365 with a single domain password. It synchronizes the user object from the on-premises AD to Azure AD, including the user's password hash.
The following figure illustrates this scenario, using Azure AD Connect on a sign-on process:
To know more about the synchronization process, check the following figure:
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