Hi!
Welcome to Microsoft Q&A forum.
The New Outlook (Windows) does notfully support third-party SMTP providers like GoDaddy for sending. Receiving works because but sending fails.
This is the only reliable Outlook solution with GoDaddy.
- Log in to GoDaddy
- Go to Email → Account Settings → Security
- Generate an App Password
- In Classic Outlook:
- Remove the account completely
- Add it again manually
- Use the App Password, not your normal password
- Disable modern auth fallback:
- Outlook → File → Account Settings → Change
- Ensure IMAP/SMTP only, no OAuth prompts
If set correctly this should stop the password loop.
Note: There is nothing wrong with your setups this is a limitation between New Outlook and GoDaddy SMTP and there is no know user side permanent fix.