You may have noticed that when the Azure Tenant is configured as Federated or Synchronized Identity, you are unable to set the Exchange Online option ‘Litigation Hold’ for a user as the checkbox is displayed greyed out:
This is a product defect (VSTS112147). Currently, in a Federated or Synchronized Identity environments, Active Roles can only be used to ‘Create Users’ and/or ‘Modify Licensing’.
Please perform Exchange Online operations natively.
This will be fixed on the upcoming release of the product: 7.4, which is schedule for mid/end of 2019. Please refer to this article for updates or contact support referencing the defect ID VSTS112147.