Outlook with MFA keeps asking for password following AD password change

Problem

  • Outlook is disconnected
  • “Needs Password” shown in lower right side of client
  • No folders updated
  • When you click on “Needs Password” M365 sends you a text code. You input it, nothing happens and this loops.

Reason

By default, Microsoft Office 365 ProPlus (2016 version) uses Azure Active Directory Authentication Library (ADAL) framework-based authentication. Starting in build 16.0.7967, Office uses Web Account Manager (WAM) for sign-in workflows on Windows builds that are later than 15000 (Windows 10, version 1703, build 15063.138). There are generally two problems we see WAM causing:

Users unable to authenticate (particularly after a password reset)

WAM introduces new requirements for Identity Providers (IdP) used to federate Microsoft 365 (O365) logins. When a Windows 10 workstation is joined to an on-premise Active Directory, WAM/M365 requires the IdP to support the WS-Trust protocol. Currently this is not supported in the Duo Access Gateway (DAG). When a user’s access/refresh tokens become invalid, such as after a password reset, the WAM framework tries to re-authenticate the user. The expected end-user experience is a popup window showing the login page of the IdP asking the user to re-authenticate. When the IdP is the DAG, this process will fail causing the user to be unable to re-connect to M365 with applications such as Microsoft Outlook. The user will see the authentication window open briefly then immediately close while Outlook continues to show the message “Need Password”.

Solution

  • Log out of all O365 related web pages
  • Close Outlook
  • Open Registry and add the following 2 dwords

[HKEY_CURRENT_USER\Software\Microsoft\Office\16.0\Common\Identity]
DisableADALatopWAMOverride=dword:00000001

[HKEY_CURRENT_USER\Software\Microsoft\Office\16.0\Common\Identity]
DisableAADWAM=dword:00000001

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