Outlook 2016 doesn't accept password or app password

Just received in one of my Hotmail accounts an ‘Action Needed – You may lose access to some of your third-party mail and calendar apps’ email which includes the link to https://support.microsoft.com/en-us/office/modern-authentication-methods-now-needed-to-continue-syncing-outlook-email-in-non-microsoft-email-apps-c5d65390-9676-4763-b41f-d7986499a90d admitting to the intermittent login issues. This should have been sent months ago. I wasted far too much time trying to figure out what has been causing the intermittent login failures until I discovered this thread. Very annoyed with Microsoft.

No... 2013, 2016, 2019 and older versions do not support OAuth for free accounts such as Hotmail. OAuth is supported for business/enterprise accounts. This is by design to get you to pay upgrade to 2021 and upcoming 2024. This is at least what the MS folks are saying. However, I added my Hotmail account to latest Office 365 and it still had issues. Separately, you can use the "New Outlook" which is free but you will need to allow MS to access and take your data in exchange. "New Outlook" is very severely function limited...

MS is not going to fix this. If this is important to you, I'd suggest you move everything off Microsoft's ecosystem. Honestly, I have had more and more Microsoft issues, spanning from Windows, to Edge, to Office, to Outlook, to Teams...to Skype. MS is rushing to change everything and we, the customers, are their QA. It seems like I am constantly dealing with MS bugs.

No warning but this is how MS operates these days. Every product, whether the OS, Office, Edge, Developer Tools,... they drop changes without much of a notice. No instructions, no whitepaper in most cases... If we are lucky, some product manager makes a blog post. Heck, it's an email account - why not use it and email us critical updates.

I’ve now been watching these notification emails coming in for about 2 months and meanwhile the functionality in my Outlook 2013 client has fluctuated wildly.

I currently have 3 (three) Outlook.com accounts and 1 (one) Hotmail.com account installed in my OL2013 client.
Formerly, I had several basic Outlook365 email accounts associated with my domains also installed.
I forget exactly when it happened, but I believe sometime on 2021 or 2022 all those accounts stopped working.
GoDaddy sent me a link to a page containing instructions on how to make them work.
I had to add 1 or 2 reg. keys and values for each.
The result was a scripted dialog box would open (one time) into which I would apply the password for each of the accounts, and, as if by magic, they (the OL265 accounts) worked.  No further prompts by the dialog box appeared.  Add the reg. keys, put the password in the new dialog box, and shazam.

I never did have any problem with any of my proper Outlook.com or Hotmail.com accounts.
That is, until January of 2024.

The first sign of trouble was on my Hotmail account.
Soon followed by my primary Outlook.com account.
As an aside, GoDaddy charges a small fortune for their basic Outlook 365 accounts so I dropped them like a hot potato.

But I still have my Outlook and Hotmail accounts.
Over the next couple of months, the accounts impacted by this specific issue have been entirely random.
Sometimes one (or more accounts) will prompt for password and which account(s) they may be are unpredictable.
Lately I even noticed I usually don’t even need to actually enter the password in the dialog box for the accounts to actually work.
I have just click the “X” or “Cancel” and Outlook connected to Exchange as it normally would.
Then somedays I have zero issues.
Ironically, the account with which I first discovered the issue, my Hotmail account, has reliably been the most stable of the four accounts.

Today, one of my Outlook accounts was HORRIBLE so I thought I’d remove and reinstall the account to see if that might resolve the issue.
During the “Add Account” process I was prompted a bazillion times for password before it would add the account.
Finally I removed the check on “Remember password” and clicked cancel and IT WORKED!!!!
PLUS, I restarted Outlook 2013 SEVERAL times and it never prompted me once for a password.
This is weird because for the previous two days, all 4 accounts worked fine.
I was beginning to think perhaps the issue was resolved.
But no…

Numerous times I’ve noticed all I need to do is click “Needs password” on the Outlook status bar and it connects WITHOUT me needing to enter a password.

I can’t imagine how MSFT can allow this issue to persist absent some super-secret plan to forcibly deprecate older versions of Outlook.

Is there something I’m missing?

Previously I sent my email address to you (when you asked for them) but no one has ever contacted me to perform testing.

Is there some other steps I’m supposed to be taking (other than the steps I previously had to take for my old Outlook 265 accounts)?