The following is a known error in the 1.0.0.0 release of the Office 365 Groups managed solution. As of August 5, 2015 it is on track to be fixed in the next .x release of the solution. Keep looking for it in the solutions area of your CRM Administration page in O365. In the interim trying refreshing the page and the error should go away. The group is being created.
Office Groups Exception occured in RetrieveOfficeGroupsSetting: 1
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