intune Exchange Online Connector

The conditional Access policy help secure email and other services (SFB and Sharepoint) depending on conditions you specify. The Exchange connector connects you with your Exchange deployment and lets you manage mobile devices through the Intune console. After the Exchange Server connector is successfully configured, it begins to inventory devices that are not yet enrolled to Intune, but are connecting to your organization’s Exchange resources or Office 365 using Exchange Active Sync. You do not need to use the connector  for conditional access policies, but is required to run reports that help evaluate the impact of conditional access. What i believe we should look into is why your deployment does not work without the Connector turned on.