Outlook continually prompts for your password when you try to connect to Microsoft 365
Sometimes when we try to connect Microsoft 365 mailbox or even when we try to create a profile, we get an error: The connection to Microsoft Exchange is unavailable. Outlook must be online or connected to complete this action.
The reason is that the Logon network security setting on the Security tab of the Microsoft Exchange dialog box is set to a value other than Anonymous Authentication.
Resolution:
Microsoft Outlook 2016 and some recent builds of Outlook 2013 are not affected by this issue. Those versions have been updated to prevent the problem described in the "Symptoms" section. These versions have the Logon network security setting disabled or removed from the Microsoft Exchange email account settings.
For affected versions of Outlook
If you have an older version of Outlook, change the Logon network security setting to Anonymous Authentication to fix this issue. To do this, follow these steps:
1. Exit Outlook.
2. Open Control Panel, and then do one of the following:
• In Windows 10, Windows 8.1, or Windows 7, click Start, type the control panel in the search box, and then press Enter.
• In Windows 8, swipe in from the right side to open the charms, tap or click Search, and then type control panel in the search box. Or, type control panel at the Start screen, and then tap or click Control Panel in the search results.
3. In Control Panel, locate and double-click Mail.
4. Click Show Profiles, select your Outlook profile, and then click Properties.
5. Click E-mail Accounts.
6. Select your email account, and then click Change.
7. In the Change Account dialog box, click More Settings.
8. In the Microsoft Exchange dialog box, select the Security tab.
9. On the Logon network security list, select Anonymous Authentication and click OK.
10. Click Next, Finish, and Close on the Account Settings dialog box.
11. Click Close on the Mail Setup dialog box, then click OK to close the Mail control panel.
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