QMM LDAP error 0x35. Unwilling To Perform user migration

So that is telling you is it not the migration tool. So figure out why and that will solve the tools issue too.  

Have you tried manually applying a complex password to the user to see if it will stay enabled?

So here are some more details..

I already have user  created with same samaccount name in target and we are trying to do a merge. Instead of doing a merge with skip password selected, for some users it fails and creates a new user as disabled.

The failed new users cannot be enabled unless I reset the password. The issue is it should not create new user, instead merge and fail.

OK so what matching rules do you have enabled in the domain pair? - if you only want to match on samaccountname, then make sure that just Account Name is enabled.

Also, since you seem to be doing some attribute skipping, make sure you are not skipping samaccountname.

Under matching objects > account name is selected. and we are not skipping any attributes.

In first session, it creates a new user with different samname and in second retry, it shows conflict error.