This is due to the hydration status of your tenant at Office 365. Each Office 365 tenant is not "hydrated" by default. Hydration is the adding of lots of settings in the Exchange Online directory service per tenant - by default lots of tenants do not need these settings and so rather than creating the settings per tenant, each tenant shares these common settings.
To enable your own Transport Rules, Free/Busy Rich Coexistence and custom RBAC settings require that all the "common" settings in the directory are copied to the tenants area of the directory. To do this means you need to run the Enable-OrganizationCustomization cmdlet in remote PowerShell to Exchange online.
Once this is done the GUI will create RBAC, rules, free/busy etc. without throwing Exception has been thrown by the target of an invocation error.
The exact steps to perform on your Office 365 tenant before configuring RBAC, rules or coexistence are as follows:
- Start the Windows Powershell
- $cred=Get-Credential email@example.com
- $EOSession = New-PSSession -ConfigurationName Microsoft.Exchange -ConnectionUri https://ps.outlook.com/PowerShell/ -Credential $Cred -Authentication Basic -AllowRedirection
- Import-PSSession $EOSession -AllowClobber