Hi @Micki Wulffeld,
the Microsoft Password change Notification Service use a Password filter (Pcnsflt.dll), the password filter is used to obtain passwords from Active Directory. The password notification filter runs simultaneously with other filters that are running on the domain controller (this means that can work with the Azure AD Password Protection DC Agent Password Filter).
Reference: https://docs.microsoft.com/en-us/microsoft-identity-manager/infrastructure/mim2016-password-management
Also i have found this:
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Question: Is it supported to install Azure AD Password Protection side by side with other password-filter-based products?
Yes. Support for multiple registered password filter dlls is a core Windows feature and not specific to Azure AD Password Protection. All registered password filter dlls must agree before a password is accepted.
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Reference: https://docs.microsoft.com/en-us/azure/active-directory/authentication/howto-password-ban-bad-on-premises-faq
So at the end, there are no reasons why they should not work together, but if you will find an issue, we are here to solve it.