An app password is a code that gives an app or device permission to access your Office 365 account.
If your admin has turned on multi-factor authentication for your organization, and you're using apps that connect to your Office 365 account, you'll need to generate an app password so the app can connect to Office 365.
To Create an App Password:
Sign in to Office 365 as the affected user and go to the My Account page.
Go to the Security info page and click the Add sign-in method.
From the dropdown choose the verification option (phone, email, and authenticator app). Finish setting up for the selected method. Find more information in the Microsoft article.
Once this is done, go back to the Security info page, again choose the Add sign-in method, and this time select App password. Set the name, and copy the key from the last step.
Please note that once the small popup with the password is closed there will be no way to see the password again. In case you wish to be able to reuse it again, save it somewhere safe.
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