Normally the automatic email wizard setup works fine and is probably server related as @Gary advised above from your error, but otherwise the below post may also help you from a user in the following thread who used an Outlook website generated app password for that error message.
“Quote below from about thread”.
Nov '22
Posting how I solved this here as nothing in this forum worked for me:
Instead of adding and Outlook.com or Office365 account with the Automatic Setup, enter account details manually (selecting EMAIL->Other), I used these settings:
Incoming server: outlook.office365.com
Outgoing server: smtp-mail.outlook.com
User:
Password: (Application password generated in your Microsoft Account)