Recently, I was trying to perform an audit search on an Office365 organization and found auditing wasn’t enabled. When I tried to do it straight from the audit screen, I encountered this error:

Sorry! We couldn’t update your organization settings. Please try again.

I went straight to PowerShell and ran Get-AdminAuditLogConfig | FL Unified* and it was not enabled.

To resolve this, I ran Enable-OrganizationCustomization 

And then I ran the Powershell command Set-AdminAuditLogConfig – UnifiedAuditLogIngestionEnabled $true

And that did it!