Using Classic Outlook on Windows for personal email, calendar, and contact management
I had this same issue after my network gave out and reconnected.
However for me it was solved after I noticed that Outlook displayed the text "all folders are up to date" "need password" on the right bottom in the grey area.
After clicking it, Outlook connected (without putting in my password or a code mind you) and the banner was gone.
I suspect the link in the banner is for authentication purposes. However it doesn't seem to properly load besides a popup asking permission for Outlook to configure server settings.
So if you have this problem I suggest checking if Outlook is asking you for the password in the right hand bottom corner.