How to fix wrong tenant credential error in SharePoint online?

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Issue Description:

Recently I was working on to configure the hybrid environment for our tenant. In order to do that I have picked up the Hybrid Picker Wizard and following the instruction started the configuration. At the initial steps this will validate your on-premises SharePoint credential and SharePoint online credential. I was using the same account for  the both on-premise and online where in on-premise SharePoint authentication was successful but authentication in SharePoint Online was failing – error message was saying that “Wrong tenant credential.” like below:

It was strange!!!. I had tried to login to SharePoint online site using the same credential it was successful, tried to connect SharePoint online site thru the ShareGate migration tool using the same credential, it was successful. It became more strangest.

In order to do the hybrid configuration as an alternative approach Microsoft has provided two in- built PowerShell Script, tried to execute those scripts there also faced the same authentication issue.
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Solution:

  1. If your account has MFA(multi factor authentication) enabled in Azure AD, you cannot connect to SharePoint online using PowerShell or Hybrid Picker Wizard as a temporary solution for time being disable the MFA in Azure AD, then after getting your work done enable it back – after MFA disabling you will not face the above issue.
  2. Have a dedicated service kind of admin account without MFA enabled and use this account for all sort of PowerShell execution with respect to SharePoint online and Hybrid Picker configuration – as per me this is recommended or good choice over the previous one.