The error below can be seen when the Test connection operation is executed on the Alta Archiving Administration console under O365 Account Sync Configuration.
Powershell connection attempt failed, check your information and try again. Exchange Web
Services connection attempt failed, check your information and try again. Graph API token
generation attempt 'failed, check your information and app api permissions and try again.

Conditional Access Policy in Azure AD is refusing connections against PowerShell, Exchange Web Services & Graph endpoints.
Ensure that the Admin UI sync test IP address is added as an exclusion in the Conditional Access Policy preventing the connection attempt.