Mac cannot connect to Hotmail account

My Hotmail (live) account has been working successfully on my Mac for some time. Now it will not connect as ‘unable to verify account name or password’. I can log in via a browser. The account is working on my mail app on my iPhone.

i have tried re adding the account with the same result. Unable to verify.

there are no incorrect keychain passwords and no 2factor verifications enabled.

I am using Apple m1 Sequoia 15.1.

can anyone help please.