The issue miraculously without any info given to me regarding what was going on has resolved itself.
I would send feedback but it would appear that the 'feedback hub' app does not work on my system, so instead I'll leave it here.
The "You've tried to sign in too many times with an incorrect password" error message leaves users with no recourse or info on how to resolve the issue, it has no FAQ page, and contacting the right support department is opaque and nigh on unachievable without continuous persistent effort. I highly recommend that anyone that can report this issue to Microsoft. This is not an issue that can be solved through AI, as without the pre-existing information, AI cannot provide the user with the required information either. The only way you can improve user experience is to more effectively route users through your support system, and to better document and explain to users what the implications are of this error message.
I also highly recommend that if you're reading this as a user, and you have this issue, for the sake of your sanity, stop using Outlook. Migrate over all of your emails, send them over to a different email service, and be free from situations like these in the future. You deserve better treatment, clearer communication, and better service than this; you deserve better than Microsoft in its current state treats you. Because if I, someone with 7 years of formal IT training, and close to 2 years of UX experience and 5 years of programming experience cannot solve this issue elegantly, then you won't be able to either.
If you need to make use of outlook services, and you have this issue, stay polite, be diligent, and be relentless in your requests for help. Document all steps you take clearly, ideally with visual (image/video) evidence of those steps taken, and communicate everything you do to any support employee. Better to overload with information, no matter how trivial, than miss the crucial detail.
TL;DR If you have the same issue, follow these steps, document them, and share that you performed these tasks with any support person you talk to.
Steps they will (should) ask of you, and you must complete them when requested, at least once.
- Check if you can access your account through a different browser, and/or incognito mode. This is important, because your browsers and apps store your login token that speeds up logging in. You need to check you can still log in when your system doesn't have that token.
- Wait 48 hours and during this period, don't log in to your account. If you NEED to use your account, only use it through places where your system still has that login token; places where you don't need to input your password to log in.
- Reinstall the app you're using, and/or clear the cache of the app/browser. This is to ensure no faulty login data/token still exists in the app/browser.
- Restart your device for reasons similar to your previous point.
- Change your password. This can resolve the issue, but be aware the issue can also re-emerge later, be sure to document it if this happens.
- If you can, log in at https://account.microsoft.com/profile/ and confirm that the account is not otherwise behaving abnormally that would suggest a malicious actor (i.e. hacker, stalker, etc.)
- Remove the account and re-add it from any app you're using to make doubly sure there is no caching issue.
I know you may have some questions, but this message is already gigantic. The technical terms like "Caching" you could look up online if you want more info.
Please, take care, and good luck!