During a migration with a client we ran the Hybrid Configuration Wizard, as is a usual process for a migration, we ran into an issue. The HCW validating the domain, using the required TXT record, and while federating the domain, the wizard got stuck on ‘Adding Federated Domain’, like so:

We let the wizard sit for almost an hour before cancelling it. Since the HCW also logs everything tat happens, we checked out the logs for the HCW and found this:

Notice the errors logged in the HCW logs. While researching the error we ran into information on the PowerShell cmdlets listed in the error:
Set-FederatedOrganizationIdentifier
How to fix?
The problem is that the federation between Office 365 and your on-premises domain is not complete. If you were to run ‘Get-FederatedOrganizationIdentifier’

Set-FederatedOrganizationIdentifier -DelegationFederationTrust "Microsoft Federation Gateway" -AccountNamespace "Contoso.com" -Enabled $true

After this change, the HCW can complete and no further issues are found.
I’ve heard of other issues where this did not resolve the issue either. If anyone runs into that and has a fix, please post a comment here.
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Your HCW error was “A remote domain could not be resolved domains.live.com”
Your solution is a work around, because the domain was not resolved you added the federation manually hence completing the requirement.
Your solution was to check the firewall or DNS 🙂