Below are my findings on this issue, just wanted to share here.
I found the same issue in our organization were users are logged in to their domain account and we have SSO enabled for login to outlook, as suggested by many of them to add ADAL in Registry didn't work as SSO will not prompt after Enabling ADAL.
Tried clearing TPM, reset bios to factory defaults, turn off and turn on TPM from bios, Reset TPM from Bios nothing worked.
I followed below steps to work around the issue,
Disjoin the laptop from domain-- logged in as local administrator and renamed domain user profile--deleted domain user entry in registry---restarted laptop---added laptop to domain--made user to login with his domain account to create new profile and outlook
worked fine with out any errors.
Still going good after 3 days need to see if it works fine.
try this steps and let me know if you have any questions.