It seems an eagle-eyed user found that when looking at the People web part in O365 Sharepoint, the person's job title is correct. But when you look at the Organization tab of a person, the "works with" section is not updated correctly from AD. Everywhere else within O365, seems to be updated correctly.
Figure 1: The person's details, Overview tab.
Figure 2: The person's details, Organization tab.
I guess it could be a lagging update, but it's been weeks since these were changed.