Using Classic Outlook on Windows for personal email, calendar, and contact management
Open Regedit.MSC with administrator account and navigate to :
HKEY_LOCAL_MACHINE\Software\Microsoft\Cryptography\Protect\Providers\df9d8cd0-1501-11d1-8c7a-00c04fc297eb
Afterwards create DWORD (32-bit) Value Key
Rename it with : ProtectionPolicy and set value to 1
Afterwards try to open affected 365 App it should force it log in page and enroll again.
At this stage Outlook,OneDriveshould work as expected.