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But by mistake, I turned on MFA for the admin account, and then when I logged in again, it prompted me to use Microsoft Authenticator. The bad thing is this account was not registered with Microsoft Authenticator, so I couldn't see any codes rebuild Outlook data file quickly in the authenticator. And there were no other login options, and I was stuck in a login loop. This is now the 2nd machine that presents the same issue. I have a valid MS 365 subscription that includes 5 device licenses. On the main machine where I have been using the suite, now my account is deactivated and if I try to authenticate, it looks like it works but then get the "Fix", "Authenticate", "Activate" or "Resolve" buttons, all of which do nothing.
Outlook credential prompt loop
In the instances that this occurs the effected user is not new to MFA but has been running it for at least months. The problem appears to randomly affect users (I’ve had it affect myself once too), and the only solution appears to one of (or a combination of) the options in the OP. Out of 140 staff the problem seems to occur once every 2-3 weeks on average. In this case are you saying that there is a password prompt for the users credentials? Clear the Windows Credential manager or recreate the users Outlook profile. In fact if you just turned on MFA and you were not using MFA before you usually end up having to rebuild flush DNS and re-sync Outlook the profile and clearing the credential manager.

Loop of 'Sign in to your account'.
I had this exact issue on another machine, that after 2.5 hours on the phone with MS support (via Zoom), the solution was to uninstall MS Office 365 and reinstall it. Yeap, you describe it exactly and unfortunately we still don’t have an answer. Closed the window without entering anything and Outlook returned to ‘Connected to Exchange’. I created a new Outlook profile, and then the old one started working. I wonder if the compuer cached a new logon token or something that the old Outlook profile could use. Also, during the new profile creation, I was only prompted for a password and not for MFA.

Resetting the Windows Credential Manager:

When we opened the old, existing profile it didn’t ask for ANY authentication, it just started working. Office 2016 is already Modern Authentication aware so APP passwords are not required. Native IOS and Android Mail apps will require the APP password or users can use Outlook for IOS/Android which is Modern Auth aware. FYI outlook 2013 requires a registry setting to work with MA. Where I work, we have a new sandbox tenant to make tests before reset cached Exchange mode official deployment. I tried registering the account to my Outlook Desktop app and for some reason I am in a credential prompt loop that always asks for it anytime I input my password.
- I even tried disabling my anti -virus while authenticating, that didn't work.
- Right now we have it set to prompt when a user is not on any of our corporate networks or they are using a mobile device.
- Where I work, we have a new sandbox tenant to make tests before official deployment.
- I do NOT have this issue with the other laptop, an iPad, a MacBook Pro and tablet.
- You may have to rebuild/restore your outlook folder/files which is a pain.
- We had the issue where Outlook 2016 kept prompting for a password for an Office 365 user whose laptop was connected to their Office 365 account using Windows 10 Pro.
- A vast community of Microsoft Office365 users that are working together to support the product and others.
- In each case the fix has either been one of the above items or a combination of them.
Changing Outlook Security Settings:
If this box is greyed out or disabled then you need to reset the Windows Credential Manager first. @Microsoft, given the level of attention the community has given this issue, I hope you come up with an update soon. We have been experiencing the exact same issue for months now.