Using New Outlook on Windows for professional communication and productivity
Yes - I think this is exactly what's happening. Some IMAP providers can apparently parse this - the ISP I'm using does not.
I'm working with them to see if they can discard the "@domain.com" part of my forced Outlook (new) IMAP login - but it's not looking promising.
It may also be that Outlook new is sending the "user @ domain.com" first, then "user" as it logs in - but some IMAP providers disconnect after the first failed attempt. I can't get enough of a trace with my ISP to tell if that's the case.