A Microsoft communications service that provides communications capabilities across presence, instant messaging, audio/video calling, and an online meeting experience that includes audio, video, and web conferencing.
Does other account with the same condition have the problem?
Do you use two-step verification all the time?
What type is your account, like *.hotmail.com or outlook.com?
According to your description, it seems related to the verification.
I test my office 365 account with MFA. It’s no problem. Moreover, you can clear the client cache and have a try.