This is a common error message when you try to reset a password from Azure management port or Self service portal.  The error message is very clear here – “The Password you’ve selected does not meet your local Active Directory password policy”.   So you have to start with your Active Directory password password policy. 

 

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You also see a detailed information in Event log of your directory synchronization server. 

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I have seen many issues related to Minimum Password Age value.  By default, it is 1 day.  If you are trying to change the password again on the same day , you may need to change value to 0.  Anyway, the error message from Azure is directly related to the configuration you have in your AD password policy as shown below: 

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