After a password change it may take a while before our Hybrid setup catches on completely, but that's usually solved in extreme cases inside 3hrs.
The second Microsoft fix listed in the first link in this response looks like it is designed to detect when Outlook is attempting to authenticate against Office 365, it checks if the users email is stored online and if not, it forces the Outlook client back to the on-premise Exchange server s.
It looks like your account has been blocked.
Next steps: - We're reviewing code data to determine why it caused the credential prompts and to prevent similar problems in the future.