Recently when setting up a new tenant for Azure / Enterprise Mobility Suite, the Azure AD Connect software gave me error “the user name or password is incorrect”. This was caused by using the .onmicrosoft.com account that was set as the Subscription administrator.
To resolve this, create a new Co-Administrator account in the Azure AD Premium console. Under Settings > Administrators, create/add a new user that will be a co-administrator.
Next, go to All Items, click the domain, select Users, then select the new co-administrator. Change the Organization Role to Global Admin.
After completing these quick steps, then Azure AD Connect will allow the wizard to continue and complete the setup!