Error "Hostname Found" when configuring PowerShell to Exchange Online

When configuring PowerShell to Exchange Online via VMWare Workspace ONE UEM the following error is displayed once you test the connection

“Hostname Found”


This error can occur if you have a Cloud Connector deployed or configured and the Cloud Connector cannot communicate to O365 or is not functional

The cloud connector configuration can be found here:

System -> Enterprise Integration -> Cloud Connector -> Advanced

If Exhcange PowerShell is set to Enabled Workspace ONE will attempt to send the traffic through the Cloud Connector (even if it is not running)

Disabling this setting will cause the Workspace ONE console to communicate directly with Exchange Online