Hi Bhuvnesh,
Once take a look at the link provided. Best Practices: Active Directory Account Moves - Compass and also https://community.sailpoint.com/t5/IdentityNow-Forum/IdentityNow-Mock-Project-Services-Standard-BeforeProvisioning/td-p/216158
Now, Use Before Provisioning Rule instead of Update Provisioning Rule. This is because, the whole update policy will be called when there is an update in any of the attributes. So, best practice would be to use Before Provisioning rule.
The answer for this is the “attribute sync”. If you have enabled attribute sync for the “OU-City” the update provisioning policy will be triggered. Also, you cannot change the CN and DN value directly by using Attribute sync. As the AD knows only if AC_NewName is called it will be an update event for CN and if AC_NewParent means for DN. This can be done via Attribute Sync or else by Before Provisioning Rule.
Take a look at below two links too,
Only the needy attributes from create profile is enough for Update policy.
Thanks!!