After enabling two-factor verification (multi-factor authentication) for my Microsoft account, I was unable to connect Outlook 2019 with my Hotmail (Outlook.com) account and I was repeatedly being prompted for my password. Although the filled in password was correct, I always received an “incorrect password” error.
After doing some research I found out that some apps, like Outlook (Desktop or Mobile) and other mail apps which use the EAS protocol, require an app password when two-step verification is configured.
I followed the below steps to get the required App Password for Outlook and to get my Hotmail (or Outlook.com) account configured in Outlook 2019.
Get an App Password and configure your Hotmail or Outlook.com account in Outlook 2019
Sign in to to the Microsoft Account Management website with your Microsoft account and expand the the Security section.
Select Additional security options. Log in with your credentials if asked.
On the Additional security options page, under App passwords, click on Create a new app password.
Use the newly generated App password (copy and paste) which is being displayed to log on to your Hotmail or Outlook.com account from Outlook (type or paste it where you would normally enter your Microsoft account password). When finished click Done to close this screen.
* Don’t forget to mark Remember my credentials.
Your account should get configured successfully now.
Wim Matthyssen 
After enabling two-factor verification (multi-factor authentication) for my Microsoft account, I was unable to connect Outlook 2019 with my Hotmail (Outlook.com) account and I was repeatedly being prompted for my password. Although the filled in password was correct, I always received an “incorrect password” error.
After doing some research I found out that some apps, like Outlook (Desktop or Mobile) and other mail apps which use the EAS protocol, require an app password when two-step verification is configured.
I followed the below steps to get the required App Password for Outlook and to get my Hotmail (or Outlook.com) account configured in Outlook 2019.
Get an App Password and configure your Hotmail or Outlook.com account in Outlook 2019
Sign in to to the Microsoft Account Management website with your Microsoft account and expand the the Security section.
Select Additional security options. Log in with your credentials if asked.
On the Additional security options page, under App passwords, click on Create a new app password.
Use the newly generated App password (copy and paste) which is being displayed to log on to your Hotmail or Outlook.com account from Outlook (type or paste it where you would normally enter your Microsoft account password). When finished click Done to close this screen.
* Don’t forget to mark Remember my credentials.
Your account should get configured successfully now.
Hope this helps!
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