Hi,
I have O365 setup using AADC with the password sync option enabled (We do not have ADFS).
We did not invoke ADFS because we did not really require SSO within our domain environment.
We are currently using Exchange on-premise.
One of the original user facing issues if we moved to Exchange Online was that the Outlook client would prompt for credentials. However I now believe with Modern Authentication this issue is now resolved.
I am trying to understand if ADFS is a requirement of Modern Authentication or not?