Symptoms

When adding the Update Active Directory User event wizard to the canvas in the K2 Designer for SharePoint in SharePoint Online (O365), a "Primary Credentials not Authenticated" error message is presented in a dialogue.
 

Diagnoses

This happens primarily in environments with a Hybrid setup (Azure AD and on-prem AD). It is due to the fact that when using SharePoint Online, users are required to access the site using an Azure Active Directory User. K2 surfaces these users against he AAD label by default. However, the Active Directory wizards are configured to grab the context of the user signed into the Designer via Label name. By default, this label is the K2 label. The K2 Label will be configured, by default, to look at the environment's on-prem Active Directory, and not Azure. Therefore, the wizard cannot understand the context of the signed on user and throws the error regarding Primary Credentials.
 

Resolution

This behavior has been identified as a bug and the following item has been logged for it:

Bug 621549: AD Wizards fail in hybrid setup when using designer form O365 logged in as AAD user. - Primary Credentials not Authenticated -

Please contact K2 Technical Support for the workaround to this bug, as it involves manual K2 database manipulation.