Cannot Connect Outlook 365 Account


I am attempting to connect my outlook 365 account ( It opens up microsoft OAuth2, i enter in my username/password and then provide the 2factor code from my phone. After that, it says “you’re all set! Continue in mailspring!”

However, Mailspring thinks for a few seconds before displaying: “Authentication Error - Check your username and password (SMTP)”

Any idea what I’m doing wrong? Or if there is a bug somewhere?