The cause of this issue is currently unknown.
This issue may also be impacting other IMAP clients.
This recommended work-around comes from the following forum post: https://answers.microsoft.com/en-us/outlook_com/forum/all/thunderbird-imap-responded-user-is-authenticated/062a82f6-e678-4462-88b7-dd6cc318386f?page=4
For assistance, contact the Service Desk.