Creating a user on an Active Directory endpoint fails with the following message in the logs:
[LDAP: error code 1 - 00002077: SvcErr: DSID-033807BB, problem 5012 (DIR_ERROR), data 8237
All Identity Manager
This error indicates that updates to the unicodePwd attribute are being rejected because the connection is not secure. When the requirement for special formatting of unicodePwd was lifted Microsoft placed a default requirement to ensure all password operations are done through LDAPS instead of LDAP. This is why it will not import the password and Identity Manager throws this error.
Setup secure communication for you your Active Directory endpoint with either SSL or SASL (recommended) per product documentation: