The same problem here. I can't recreate outlook.com e-mail account on Key2 Blackberry Hub and neither on Sony 1 V gmail app.
On Blackberry Key2 I can't create Outlook exchange account at all, tried everything. Created App password on MS account advanced security settings page and that does not help. Tested both server addresses eas.outlook.com and outlook.office365.com - no luck. It only saying "Your account (******@outlook.com) can't be authenticated".
Then tested to create the same exchange account on new Sony I V Android and it let me to create imap account without calendar and contacts syncing. Yesterday everything worked normally on both phones.
And then there is an old Samsung GalaxyA8 with Android 9, where the same exchange account working normally, calendar, contacts and e-mails syncing with 2 PC-s correctly.