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This meaning can change based on if you are using Modern authentication or Basic authentication.
Modern authentication: This would mean that the Application ID and secret failed to authenticate.
Basic authentication: This would mean that your username does not have permissions to authenticate with the Microsoft Graph Online.
This is a connection to the Exchange Web Service.
Modern authentication: This uses a duel authentication leveraging the Application ID and Username.
Connection to PowerShell:
This step checks that we can connect to Exchange Online PowerShell. Only the username is used for this verification. Require AllowBasicAuthPowershell and AllowBasicAuthWebServices to be allowed in the group policy this user is added to.
Check Exchange plan and SharePoint plan: If either of these fail then your plan cannot automatically identified as Valid. Use the below KB to add the proper plans to your configuration
Service plan is not found when adding Office 365 organization:
Check Required cmdlets access, Mailbox Search role, and Applicationimpersonation role: The roles are all related to Exchange Online.
Check SharePoint Online Administrators role: This refer the SharePoint Administrator role that you assign to the user in the Admin Center.
Check LegacyAuthProtocolsEnabled: This is a setting in SharePoint Admin center to enable legacy Authentication.