Microsoft outlook 2007 and outlook 2010 often keep prompting for authentication while configuring Office 365 email profile.It’s a very common issue , outlook 2007 is a very old client and its only supported post sp2 with office 365 however Outlook 2010 is fully supported.
After through analysis we have found that Office 365 requires “Anonymous Authentication” in Logon network security of tab “Security” and this option is actully missing on Outlook when you face such issues.
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Thankfully the solution to the issue is quite simple
Upgrade to Outlook 2013 : Its the latest and most compatible version with Office 365
If you want to use Outlook 2007 then make sure you have SP2 installed on it and then install the following two updates, this should resolve the issue
For using Outlook 2010, Install the following two updates to get it working with Office 365
Hope it resolves your issue, else reach out to us for help here
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