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Issue with hotmail account sign in

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I have mapped Gmail / Hotmail / iCloud accounts to my Thunder bird mail client on my Windows 11 PC.

However of late I find that only the Hotmail account keeps popping up the dialog asking for password. This is quite a nuisance as Hotmail is my primary mail account. But the funny part is I do get mails in my InBox even if I cancel the dialog box. And even funny is it repeats the dialog even if enter the right password.

Appears to be some issue related with how password is handled.

Any help is appreciated ! Thanks

I have mapped Gmail / Hotmail / iCloud accounts to my Thunder bird mail client on my Windows 11 PC. However of late I find that only the Hotmail account keeps popping up the dialog asking for password. This is quite a nuisance as Hotmail is my primary mail account. But the funny part is I do get mails in my InBox even if I cancel the dialog box. And even funny is it repeats the dialog even if enter the right password. Appears to be some issue related with how password is handled. Any help is appreciated ! Thanks
Attached screenshots