Step 1: Sign into your Office 365 admin center via https://portal.office.com
Step 2: Navigate to Admin center and click Users > Active users.
Step 3: Click on a user and click Manage multi-factor authentication.
Step 4: In the next page, search for the user and click on the user.
Step 5: Disable the MFA if enabled.
Step 6: Now, try to add the account again in Outlook.