"A user with this name could not be found" when resetting a password for a user in Microsoft 365

Problem

When you try to reset a password for a user in Microsoft 365, you receive the following message:

A user with this name could not be found. They may have been deleted.

Solution

To resolve this issue, use Microsoft Azure Active Directory module for Windows PowerShell to set the user principal name (UPN) to the default domain. Then, change the user principal name back to use the vanity domain. To do this, follow these steps:

1. Start Azure Active Directory module for Windows PowerShell, and connect to Microsoft Entra ID.

   Note

   For more info about Azure Active Directory module for Windows PowerShell, go to the following Microsoft website: Microsoft Entra Cmdlets.

2. Change the UPN of the user to the default domain. To do this, run the following command:

   Set-MsolUserPrincipalName -UserPrincipalName [ExistingUPN] -NewUserPrincipalName [NewUPN]
   

   For example, use this command:

   Set-MsolUserPrincipalName -UserPrincipalName johnsmith@contoso.com -NewUserPrincipalName johnsmith@contoso.onmicrosoft.com
   

3. Change the UPN of the user back to the original domain. To do this, run the following command:

   Set-MsolUserPrincipalName -UserPrincipalName [ExistingUPN] -NewUserPrincipalName [NewUPN]
   

   For example, use this command:

   Set-MsolUserPrincipalName -UserPrincipalName johnsmith@contoso.onmicrosoft.com -NewUserPrincipalName johnsmith@contoso.com
   

4. Reset the password again.

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