This is really a shame. It's been a week now and this still isn't fixed? For me, I keep getting "authentication errors." I had to remove the account and add it back too many times to count, which is a royal pain. The workaround to change the IMAP server works only temporarily.
Microsoft's response here Outlook and other apps are unable to connect to Outlook.com - Microsoft Support is the same information that's been up since January 23rd I believe (says last update was January 26th). The response that "we're working on it; for now, please use the browser) is unacceptable in my opinion.
I realize there will be problems now and again, but a whole week to fix this issue? I have a business to run; I rely on email clients to check numerous email accounts in one app. I don't have time to check the browser every time I need a 2-factor code or anything else for that matter.
What really gets me is the fact I have a paid Office 365 subscription and my email only works half the time, whereas my free accounts with other email providers never have these issues. Microsoft is a huge company and numerous people rely on the ability to check their email through an app. Paying customers especially should be able to expect things to get fixed within a week.
Anyway, that's my two cents and complaints. Maybe someone can bump Microsoft into action on this issue?
(I checked the box to notify me when someone responds, but how will I even know if my email account doesn't work?!)