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Office 365 and Thunderbird

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I have been using Thunderbird with my own domain email for sometime which is via Godaddy and office 365..now this week it stops working. Keeps asking me to enter my password. I can sign into the web based mail with office 365 but same password does not work with Thunderbird. I have checked the incoming and outgoing settings and they are the same as they have been in the past. But to be safe I doubled checked with the IMAP settings provided by office 365 and they are correct. Tried to change it to POP to see if that would work..still no go. I made sure IMAP and POP is enabled in office 365 and also that it is enabled under my administration for this email address. Godaddy told me Thunderbird does not support IMAP and I had to use different client. I tried two other email clients just to be safe and I get the same problem. Godaddy basically tells me to go pound sand and use outlook or web based. I don't really want to pay godaddy $49.99 and switch to outlook for mail. Anyone have any other ideas of what could be the problem ? Adding the screen shot of the settings from office 365.

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