@Alexander Henket @Jason Sandys @Drew Love
I was able to fix this on my phone by changing the default browser to chrome. Found this issue is really due to one of the Safari security updates that comes with iOS 14.
Open Settings on your iPhone or iPad
Swipe down to find the third-party browser you’d like to set as the default
Choose Default Browser App
Tap the third-party app you’d like to use.
Then go back to your mail app and add the Exchange account normally. This time the Auth request will open chrome where the authentication is allowed to complete and not loop like it does in Safari.
Test this and let me know if it works for you too.