Can you change Azure AD Password Policy?
In Azure AD, The last password can't be used again when the user changes a password. The password policy is applied to all user accounts that are created and managed directly in Azure AD. This password policy can't be modified.
What is the default Azure AD Password Policy?
The default password policy has a priority of 200. Set the precedence for your custom password policy to override the default, such as 1. Edit other password policy settings as desired. Account lockout settings apply to all users, but only take effect within the managed domain and not in Azure AD itself.