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You have a Microsoft 365 E5 subscription that is associated to a Microsoft Azure Active Directory (Azure AD) tenant named contoso.com.
You use Active Directory Federation Services (AD FS) to federate on-premises Active Directory and the tenant.
Azure AD Connect has the following settings:
Source Anchor: objectGUID
Password Hash Synchronization: Disabled
Password writeback: Disabled
Directory extension attribute sync: Disabled
Azure AD app and attribute filtering: Disabled
Exchange hybrid deployment: Disabled
User writeback: Disabled
You need to ensure that you can use leaked credentials detection in Azure AD Identity Protection.
Solution: You modify the Azure AD app and attribute filtering settings.
Does that meet the goal?