This is in Education so we get E1 Licenses for all faculty and students.
Originally we did not have DirSync, only manually created in cloud users. ~150 of those. Each of those users I assigned the full E1 license which included Exchange. This gave them an Exchange Online mailbox in addition to their On premises mailbox.
Recently I configured DirSync (AADsync) and Password Sync which all went well. SMTP matching picked up all the cloud created users.
Problem is the users still have an exchange online mailbox and an on premises mailbox. At least one issue with this is if a cloud user sends mail from exchange online to another user with duplicate mailboxes, it goes to exchange online which they do not use. I need it to go to their on premises mailbox.
Exchange 2010 SP3 hybrid configuration
I found that if I remove the exchange license through...