The issue is likely because you have not enabled IMAP on your outlook account. It's disabled by default.

1. Log into outlook's web portal in your browser. https://outlook.live.com
2. Open settings > mail > forwarding and imap.
3. Enable "Let devices and apps use IMAP"

See guide below linked below. https://www.mailjerry.com/how-to-enable-imap-for-outlook/

It seems like your account is authenticating, but isn't syncing/connnecting. The first thing that you should check is your internet connection and the account in question, by signing into Outlook on the web to ensure the account functions there. If it does, Outlook on the web to ensure the account functions there. If it does, try removing the account and then adding it again within in Outlook