Same issue. When trying to setup the app, "an error occurred' would pop up after the email was typed in and the 'continue' button was hit.
-Android phone (7.1.x)
-Outlook app (worked until the password change)
-After the corp password change the app stopped syncing.
-Reinstalling the app didn't help
-Readding account didn't work as it would simply take me back to the app screen where I would be prompted for the email address and the error would pop up agian.
Finally I typed in the wrong password (left one letter out from the domain on purpose). This takes you to the advance setup setting where you are presented with more options (Outlook, O365, Exchange). Exchange is what you need but it wouldn't let me fix
"the typo" in the email address (it is greyed out). Playing with a few settings within the app (at the same exchange window) finally allowed me to fix the email address and type in the password and the server info (outlook.office365.com).
Hope it helps someone.