In OA 7.0 platform Strong password policy ("7-characters minimum, including letters in different cases and digits") does not meet Office365 application requirements, which are "8-characters minimum password".
Also, the only special character, that is used for password generating is
Due to internal changes presented since OA 7.0, all cloud services have to ask separate passwords for their users. Office365 asks for separate service user password explicitly, starting from package version 16.8.
Update Office365 APS package to version 16.8, according to KB 128847.
As for special character question: Feature Request #APS-38345: "Increase generated password length up to 10 for strong policy" has been created to improve auto-generated passwords complexity.