The issue occurs if the organization has implemented the State and Country picklists feature on their org. This can be checked by following the steps below:
  1. Click Setup at the top-right corner of LCRM (or click your name > select Setup)
  2. Click Data Management > select State and Country/Territory Picklists
If this feature is enabled, contacts will no longer sync from Online to LCRM. When State and Country Picklists are enabled, new fields are added to the contact to hold state and country codes. Luminate Integration is not making use of those fields.

For further instructions, see Salesforce's documentation: Enable and Disable State and Country Picklists.

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