As a side note about 1-2 times a year for about 5+ years, email would get the authentication error that would last 2-3 days. Web outlook would be fine so confirmed never a password issue.
I concur! I have the exact same experience!! It pops up on my desktop Outlook but more frequent on my Android device via its Exchange accounts setup. And as exactly as you said, it last a few hours or sporadically up to a couple of days and it would go away. I suspect because the issue went away in a short amount of time, nobody bothered to create a big thread to discuss it or it didn't get the visibility like this time.
For what it's worth, my desktop Outlook 2013 has been a lot better in the last 3-4 days. I get one-pop a day at the start of my day, like an overnight time-out with the authentication. I can simply cancel the pop and I am good for the entire day. My phone, however, experience more of the pops, but it does recover on its own, whereas over last weekend, it was out the entire few days.
As a few others mentioned, sync of email/contact/calendar are extremely important for most people in today's world and if MS does not find a way address this issue, then it's going to cause people to move away to other platforms. The key issue here is that at Outlook for Android app's sync'ed data is stored locally within the app or its cache, and it doesn't seem to be stored in the device-wide email/contact/calendar storage. Android or iOS's native Exchange support do that and store those in the device-wide storage. The benefit of that is other applications can access these device-wide storage, so you can for example access your contact list from a VoIP/chat app without having that app login into your MS or Google accounts.