The Archive Mailbox feature cannot be enabled:
STATUS:
This is by design for Federated and Synchronization identity scenarios. The reason this feature cannot be enabled for Federated and Synchronization identity scenarios is because Exchange operations cannot be run in Federated and Synchronization identity scenarios. ARS can only read Exchange Online properties.
The O365 Exchange “Archive” feature can just be enabled via ARS on Non Federated Domain scenarios:
WORKAROUND:
On Federated and Synchronization identity scenarios, this feature will need to be enabled online through the Azure portal. Afterwards in order to see the correct status of this feature via ARS, it will need to be backsync to ARS. At that stage the O365 Exchange archive feature will appear enabled via ARS.
Note: This is also the case for other Azure/O365 properties such as "Send on behalf" and "Forward to", these properties appear disabled on Federated and Synchronization identity scenarios:
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