Error code 80090016 Trusted Platform Module has malfunctioned.

So as an update to my last post... 

I had already cleared Credential Manager & cleared the TPM which resolved the issue until the laptop restarted. 

The AAD Broker Plugin fix didn't work for me sadly.  Tried the following regkeys that I found during my searches into this issue but none of them worked;

HKEY_LOCAL_MACHINE\Software\Microsoft\Cryptography\Protect\Providers\df9d8cd0-1501-11d1-8c7a-00c04fc297eb ProtectionPolicy =1

HKEY_CURRENT_USER\Software\Microsoft\Office\16.0\Common\Identity DisableAADWAM=1

HKEY_CURRENT_USER\Software\Microsoft\Office\16.0\Common\Identity DisableADALatopWAMOverride=1

I tried them each individually and restarted between each one, but no joy.

I checked the HP Update Assistant and all updates from there were already applied.

I then applied the latest Windows Updates which were

KB4580364 - Cumulative update

Connexant Audio

I also did a search for optional Windows Updates and there was a HP firmware one (I didn't note the name of this update to put it on here I'm afraid) so I decided to apply that one too because I'm convinced it's the TPM chip on these HPs that are not compatible with 2004 in my case. 

After a restart, Outlook, OneDrive & all other office apps logged straight in as expected.  The user needed to get onto their machine after letting me work on it for so long, so I didn't get to test restarting again to see if I could 'break it' again! So I'm waiting to hear back from them tomorrow, but fingers crossed this has fixed it - it's certainly the best it's been since 2004 was applied.

I really hope MS admit this is a widespread issue & get to the bottom of this one ASAP and publish a proper fix.  Good luck everyone (I might be back tomorrow of course!)

I'm having the same problem and have lost days of my life trying to sort it, are Microsoft fixing it ?

I 100% agree with you Laura! Microsoft needs to resolve this in either an update or patch because this is ridiculous. What I have done to workaround this problem is adding a GPO to add this DWORD. At least on my end, this happens when I migrate between domains. As soon as I add the DWORD I do not encounter this problem.

I hope that Microsoft is monitoring these and can understand the severity of this issue. Because of this and other issues is why many companies are considering moving or have moved into Google's suite of productivity tools and services. Microsoft, you need to get your act together!

I have had this problem on 3 machines now - all HP.  2 are ProBook 450 G3s one HP Pavillion 15.  They all had the issue immediately after updating to 2004.  These systems belong to dealers and so all of my troubleshooting has been over remote control.  They are local Windows users using Office365 apps provided centrally by us - we're not currently using MFA but intend to.

I tried pretty much everything I could find with no luck - the ADAL registry key, clearing the TPM, uninstalling & re-installing Outlook credential manager etc.  The only thing I didn't try, because of the amount of work to get them set back up again, was to re-create the users windows profile.

I rolled them back and all Office apps, OneDrive etc working fine again.

I found this potential fix and sharing it here in case it helps anyone.

https://www.linkedin.com/pulse/solving-modern-authentication-issues-office-365-chris-leet/

I'm hoping to test it on one of the systems that's playing up since the 2004 update was applied over the weekend and I'll let you know if it works for me.

Microsoft you really need to acknowledge that this is an issue affecting a lot of people and post a fix.  The ADAL key, re-creating the user profile or indeed rolling back the updates are not solutions.

According to KB3480364 all we can do is uninstall 2004 and revert back to old W10 version for those that haven't been messing with this for a month of Sunday's and not missed to timing out of this option or just wait for MS to correct and issue update

Known issues in this update