Hi @Neena-4150 ,
Looks like your issue is a known issue and it is fixed, the Outlook Team added OAuth support for Yahoo IMAP accounts starting with build 16308.10000 in the Office Beta Channel and Current Channel (Preview). As of 8/2/23 Yahoo OAuth is now at 100% Current Channel. It's not at Monthly Enterprise Channel or Semi-Annual Channel yet.
If you are on channels such as Monthly Enterprise Channel or Semi-Annual Channel and you want to use Yahoo OAuth, you can switch to Current Channel using the guidance here, Change the Microsoft 365 Apps update channel for devices in your organization.
More information:
How to add a Yahoo IMAP account to Outlook Desktop without an App Password
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