Symptoms
There are several scenarios that can occur with the "Address validation failed" error.
Case#1
During placing a Microsoft365 order, the process is failed on the Address validation step with the following message:
Case#2
Sales Order is failed with an error
"Service Creation Failed: Platform error #error_code #-1, extype_id #-1, module_id #, '500 Internal Server Error' received from 'POST https://O365AEH.cloud.local:443/o365app01/aps/tenants': Could not deserialize response
with error in the application sitelog
2021-07-14 14:28:49,513 <4616> [ 136] ERROR flow : Error occurred during customer creation. PartnerApiParsingException: Response: {"originalAddress":{"country":"IL","city":"Tel Aviv","state":"Tel Aviv","addressLine1":"01 Taversky","postalCode":"6711010"},"suggestedAddresses":[],"status":"None","validationMessage":"Address field invalid for property: 'City'"}, Base Description: Partner Exception: Error Category: ResponseParsing Service Error Payload: null Context: Request Id: 20bd65bc-266a-445d-89af-2580530196e9, Correlation Id: fb52ed30-2ce0-4dcf-8a84-fb2e5ae6139d, Locale: en-US Base Description: Microsoft.Store.PartnerCenter.Exceptions.PartnerResponseParseException: Could not deserialize response ---> Newtonsoft.Json.JsonReaderException: Unexpected character encountered while parsing value: {. Path '', line 1, position 1. at Microsoft.Store.PartnerCenter.PartnerService.SynchronousExecute[T](Func`1 operation) at Parallels.Office365.Gateway.ServiceProvider.PC.PcCustomerManager.ValidateAddress(CustomerArg customerArg, Address address) in C:\hudson\workspace\ps-apps_office365_release_20.1.1\O365-Web\src\ga
Cause
Since Microsoft365 v20.3.1 release, improved address validation is introduced to comply with the updated address validation API from the Microsoft side as released in the following article:
https://docs.microsoft.com/en-us/partner-center/announcements/2021-july#8
The new improved features support the validation update as it's is described in Microsoft 365 20.3.1 release notes
Resolution
Update Microsoft 365 application to the latest release 20.3.1 if the outdated version is used.