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When the first time user has keyed in the password, the Outlook is connected to Microsoft Exchange, then later it will pop up again and ask the password for several times. So this is very irritating for the user. This happens when the desktop/laptop is not joined to the domain. If the desktop/Laptop has joined the domain, there is no problem. FYI, the Exchange version is Exchange 2010 SP2. I have checked that the Outlook Anywhere configuration is disabled. Thanks.

smssb
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  • Does Outlook working well after enter password? Those Outlook clients cannot use Windows Authentication to verify their account, and use basic authentication to verify, thus it's an expect behavior. Upgrade your Exchange to SP3 with latest version first. – Jianfei Wang May 15 '18 at 03:55
  • The Outlook still will prompt to enter password again. – smssb May 16 '18 at 05:45

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Common Issue and check out the following solution that can help to fix this:

Method 1: Follow the below-mentioned steps to remove previously saved credentials.

  1. Click on Start and then click on Control Panel
  2. Click on Credential Manager
  3. Select the set of credentials that has outlook in the name and then click on the name.
  4. Click on Remove from Vault.

In different scenarios, this Password prompt error occurs and solutions steps are different for each condition.