Hello.
I have the exact same issue. I have reset my password over three times already and it still tells me it's blocked (see message below). I have tried all the above and it still doesn't work. Could you please tell me what else I can do?
Thanks,

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Sign-in is blockedYou've tried to sign in too many times with an incorrect account or password.Sign-in with ******@hotmail.com is blocked for one of these reasons:
Someone entered the wrong password too many times.If you signed up for this account through an organization, you might not be able to use it yet.
Reset your passwordSign in using another Microsoft account