(The underlying connection was closed) error when running Hybrid Configuration wizard

Original KB number:   3068838

Symptoms

When you run the Hybrid Configuration wizard, you receive a An error occurred accessing Windows Live. The underlying connection was closed: The connection was closed unexpectedly error message. The full text of the message resembles the following:

ERROR:Updating hybrid configuration failed with error 'Subtask Configure execution failed: Creating Organization Relationships.

Execution of the Set-FederatedOrganizationIdentifier cmdlet had thrown an exception. This may indicate invalid parameters in your Hybrid Configuration settings.

An error occurred while attempting to provision Exchange to the Partner STS. Detailed Information ""An error occurred accessing Windows Live. Detailed information: ""The underlying connection was closed: The connection was closed unexpectedly.""."".
at Microsoft.Exchange.Management.Hybrid.RemotePowershellSession.RunCommand(String cmdlet, Dictionary`2 parameters, Boolean ignoreNotFoundErrors)

Cause

This can occur if proxy settings are configured incorrectly. For example, this can occur proxy settings do not allow access to the endpoints that are used by Microsoft 365.

Resolution

  1. Configure the settings on the proxy server to allow access to the endpoints that are used by the service. For a list of IP addresses and URLs that are used by Microsoft Exchange Online, see the Exchange Online section of Microsoft 365 URLs and IP addresses.

  2. Make sure that proxy settings are configured correctly on the Exchange servers in your environment by doing the following:

    1. Set the proxy in Internet Explorer.

    2. Set the proxy by using the netsh command-line tool. For more information, see Netsh Commands in for Windows Hypertext Transfer Protocol.

    3. Set the proxy by using the Set-ExchangeServer cmdlet. For example, run the following command:

      Set-ExchangeServer NameOfServer -InternetWebProxy Http://proxyURL:Port
      

      For more information, see Set-ExchangeServer.

  3. Rerun the Hybrid Configuration wizard.

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