No error message is displayed and Personal Archive does not get enabled for the user despite running a Clean or Scheduled O365 Sync
A deleted mailbox is retained in the Recycle Bin for 30 days in Office 365. If a new mailbox is created before the mailbox is permanently deleted, on the same email address, a new archive gets created. The Personal Archive option does not get enabled as the Office 365 Sync can see the mailbox in both Active & Deleted sections.
Delete the user from the Recycle Bin and then run a Clean/Full Sync.
1. Connect to Azure Active Directory by running Connect-MsolService and entering the admin credentials in the dialog box that appears.
(Need to have Azure Active Directory for Powershell installed on the machine to execute these commands)
2. To see a list of the deleted users run Get-MsolUser -ReturnDeletedUsers

3. Remove a specific deleted user with Remove-MsolUser -RemoveFromRecycleBin.
Example : Remove-MsolUser -UserPrincipalName demoaccount@evcloudbl.onmicrosoft.com -RemoveFromRecycleBin

Note: A user deleted with the above command cannot be restored as the account will be permanently deleted.
4. Run a Clean Sync and the Personal Archive option should get enabled for the user.