Yes. MigrationWiz uses native APIs to access the IBM Domino mailbox data, and is not affected by whether DAOS service is running or not. Lotus Domino Object and Attachment Service (DAOS), a feature introduced in Lotus Domino 8.5.0, is designed for saving disk space. DAOS extracts attachments from email messages and stores them in a separate location, replacing them with a reference to the stored data. DAOS is completely transparent to C API calls, agents, and LotusScript.
When migrating from IBM Domino to Office 365 and Exchange, make sure that the Lotus Notes mailbox size (mail file size + attachments stored in DAOS) does not exceed maximum mailbox size for Office 365 or Exchange prior to migration.