Authentication Failed for Hotmail. Update your server settings

I keep getting this notification every 15 minutes and it’s driving me insane. I update my server settings, and it goes through just fine, and then the same notification comes back again. I read a few other posts about this issue, but didn’t see any resolution.

Also, when I try to send emails, they get stuck in the outbox and I get notifications that they failed to send. If I try resending them, they seem to go through.

I updated the app, I removed the email and re-added it. Neither of those steps worked. Is there a fix for this?