If you use Microsoft’s two-step verification, you’ll need to enter an application-specific password when you setup your Hotmail, Live, Outlook.com or MSN account on your Android device.
If you try to use the normal password, you’ll get incorrect password error.
To generate a new app password, follow these steps:
- Sign in to your Microsoft account.
- Click Security & password.
- Under App passwords, click the Create a new password link.
- A new app password is generated and appears on your screen.
- Use this password to setup your Hotmail, Live, Outlook.com or MSN account on your Android device.