There could be multiple reasons for Single Sign On getting failed even after Test Configuration is successful.
AD / LDAP permissions
If your users are stored in the LDAP user directory in JIRA/Confluence then the plugin faces an error while updating their attributes.
Go to User Profile tab and check Disable Attribute Mapping checkbox. Similarly, go to the User Group tab and check the Disable Group Mapping checkbox.
If this doesn’t resolve the issue then please send us the logs and we’ll help you troubleshoot this issue.