To import Office365/Azure AD accounts use Microsoft Graph instead:
To import from Office365 / Azure Active Directory you will need to create a new group through the "Add Group" page. You will also need a user to log into in the account you want to sync. Once, you enter a name for the group, click on the "Third-Party Integration" tab an choose "Office365 / Azure Active Directory" from the "Import Type" dropdown menu.
The "Create a Service Principal" checkbox will allow the portal to create a web API user in your account to make re-syncing the group easier and quicker in the future. If you choose to create a Service Principal, you will need to log into your Azure account after you create the group and grant the appropriate permissions so that is can access a user list. You can download instructions here.
To begin the syncing, click on the "Request Access Code" button. The system will begin by creating an access code for you to use to make a connection. Once complete, you will need to copy the access code and follow the link listed in "Step 2," https://microsoft.com/devicelogin. On this page you will enter your access code into the field and click "Continue." You will then be prompted to log into the account you want to sync. Once logged in, you can return to the portal.
Once the sync is complete "Step 3" will be updated with a check mark and the number of targets the system sees will be listed in the "Group Targets" section. At this point you can click "Create Group."
To re-sync, you will click on the link icon on the "Manage Groups" page. Depending on whether or not you chose to create a Service Principal, you will either need to follow this process again or simply clicking the icon will take care of the entire process for you.