The "permission-issue" error with error code 8344 in Azure AD Connect can have two causes. One is not directly an error but more of a security precaution, the other actually has to do with permissions.

The error looks like this:

Azure AD Connect, Synchronisation Service Manager
Azure AD Connect permission-issue, 8344

Reason 1, Security (Administrator)

I haven't seen this reason officially anywhere yet, but I've already encountered it in two new environments. Users that were in the "Domain Administrator" or "Enterprise Administrator" group were not synchronized and displayed with error 8344.
Of course I didn't mind! Because users with administrator rights in the local domain should only be used there. There is no reason to also use them in Azure AD with possibly even admin rights there.

In this case it is either to remove the users from the group or to move them to an unsynchronized OU.

Reason 2, AD permissions

If it is not the first reason, the "permission-issue" error (8344) in Azure AD Connect usually occurs after activating "Password Sync" or when changing the sign-in options. This is because the service account you specified or was automatically created in an earlier step does not have the correct/necessary permissions.

You can supplement/check the authorizations as follows:

  1. Right-click on the domain forest (e.g. ad.scloud.work)
  2. Ensure the permissions of the service account in the Security Tab via Advanced:
    (Automatically generated and named MSOL_randomID)
    • Replicate Directory Change
    • Replicate Directory Changes All
    • change password
    • reset password
  3. If authorization inheritance is switched off on an OU, these must also be assigned there.
  4. Ready

Permission reference: Azure AD Connect: Accounts and permissions - Microsoft Entra | Microsoft Learn

You can also "simply" put the user in the domain admin group, then it will also work. But don't do this!
Since version 1.4.x, such an account (domain or enterprise admin) can no longer be stored during setup.