Outlook 2016 doesn't accept password or app password

2FA is enabled - I believe it now has to be to enable app passwords to be generated?

This is not resolved, I'm using the MSI version of Outlook 2016 with my Hotmail setup as Microsoft Exchange, with an App password and 2 factor authentication is enable. Every couple of days it authenticates and lets me read my new emails in Outlook but most of the time I get a prompt for my password which keeps returning.

Microsoft, are you doing this deliberately to make us take out a Office 365 subscriptions, if so then at least tell everyone rather than pretending to resolve the issue.

From not the community member:

If the cases just as the picture which is in the first post which was logged via the Windows, will set the MS email account in the windows directly help?

Because at least, the outlook 2021 will list the accounts under the For other apps, select Add a Microsoft accountor Add a work or school account.

https://support.microsoft.com/en-us/windows/add-or-remove-accounts-on-your-pc-104dc19f-6430-4b49-6a2b-e4dbd1dcdf32#WindowsVersion=Windows_11
To make signing in to your accounts easier and faster, you may want to add accounts for different apps. 

To add an account used by apps to your PC:

1. Select Start > Settings > Accounts > Email & accounts.
2. To add an account used by email. calendar, or contacts, select Add an account under Accounts used by email, calendar, and contacts. For other apps, select Add a Microsoft accountor Add a work or school account.
3. Follow the prompts to add the account.

(The outlook 2016 msi way install might need updates January 2024 PU
KB5002096 https://learn.microsoft.com/en-us/officeupdates/office-updates-msi 

And some regedit is suggestied
https://learn.microsoft.com/en-us/exchange/troubleshoot/administration/modern-authentication-configuration
It is recommended that users force Outlook to use Modern Authentication by setting the DWORD value of the following registry key to 1: HKEY_CURRENT_USER\Software\Microsoft\Exchange\AlwaysUseMSOAuthForAutoDiscover)

It's no good after all. In fact, the situation is even worse today.

Yes still not fixed.

Every morning and again and again during the day I am asked to enter my password for outlook.com. I have tried everything that has been suggested here. And my app password doesn't seem to be accepted either. But in-between it connects anyway without me doing something.

This is really extremely annoying. I wonder why Microsoft doesn't get this bug fixed. Obviously something changed around 24 January, because everything worked fine until then.

I use Outlook 2016 on Windows 11 home and have installed all available updates.