Hello,
I was able to fix the issue without a factory reset as the issue isn't with the phone but the teams app, this is how I fixed the issue.
I had to sign in with my email on the phone, when it asked for my password I hit "sign in with a different account" and then I used the user's email that was having problems and it asked for work or personal account.... this time I selected work and then let the user put in their password and that worked.
This is clear it's a bug with the teams app, it looks for a Microsoft account while we only have office 365 account for work. This would be very easy fix if when signing into teams with an email to simply ask every time if its a Microsoft or an office 365 account, just like when I sign into the Microsoft community, it will ask to sign in with a Microsoft account or an Office 365 account....
teams needs better support/updates