I am also experiencing the same issue.
Its my work email address Office 365 one that fails to add.
All this started when I changed my Office 365 password. After changing the password, I decided to remove my account and add it again because it didnt prompt me for a new password.
My other laptop- did not experience this issue, that laptop is connected to Entra ID - Azure Active Directory [Work or school account].
But the main computer from where I work is a personal one.
To fix this issue, I have also tried adding the email by using Advanced options IMAP SMTP way but it didnt help. I still get the same error.
I went to app settings- performed Reset, Repair and also Uninstall. Reinstalled it back but its the same.
Restarted computer several times, still the same.
I really dont wish to create a brand new user account. Usually Microsoft Store apps like these work fine on a separate windows user account.
Of that im sure creating a new account will let me setup the email.
Also- is there a way to clear AppData for store related apps? any specific way to remove registry or clear any history---for the cache created by this app?
Im going to try revo Uninstaller - to see if it can help me delete the registry records and app data for this Outlook New app.