Using Classic Outlook on Windows for personal email, calendar, and contact management
POP3 & IMAP are now both legacy mail protocols which are directly responsible for the repeating password prompt issue.
Good news though! Microsoft has finally addressed this issue. The following article explains the situation: https://support.microsoft.com/en-gb/office/modern-authentication-methods-now-needed-to-continue-syncing-outlook-email-in-non-microsoft-email-apps-c5d65390-9676-4763-b41f-d7986499a90d:
Essentially come September 2024, all previous Outlook clients (2019 & older) will no longer support outlook.com email addresses natively. The easiest option is now to use the "Outlook for Windows" app from the Microsoft Store, or alternatively upgrade to Outlook 2021 or Microsoft 365