Managing personal Outlook.com account settings, security, and privacy
What your screenshot shows looks almost identical to the Windows Live Mail app and
is the Outlook desktop email client. Evidently it is not being regarded or treated the
same way as are other email clients considered to be "third party" or "unsupported",
and maybe are being exempted from the updated login requirement for being a
"trusted Microsoft app" unlike the legacy Windows Live Mail which doesn't offer
the updated login OAuth2 either. If you access your email account through a web
browser you can click the gear icon to access your settings and then on the Mail
tab you can access permissions that relate to POP being enabled and permissions
for other email clients to be enabled, along with enabling mail forwarding and
other permissions.