How to Enable Exchange/Outlook and Skype MFA in Office 365

So, you discovered that enabling MFA makes Exchange and Skype not work properly. Because you thought like me and figured that if you would run Office 2016 we are all set. Almost…

Our problem where due to the fact that we had used O365 since before Aug 2017. New accounts shouldn’t have this problem.

 

You will need the following:

 

Step 1 

Get latest updates for everything

Connect to Exchange Powershell and input the following:

Set-OrganizationConfig -OAuth2ClientProfileEnabled:$true

Check it it has indeed done that with:

Get-OrganizationConfig | ft name, *OAuth*

 

Step 2 

Connect to Skype Powershell and input the following:

Set-CsOAuthConfiguration -ClientAdalAuthOverride Allowed

 

Step 3 

Clean out Skype folders:

Terminate skype. Then:

  1. Navigate to Users > username > AppData > Local > Microsoft > Office > 16.0 or 15.0 > Lync
  2. Delete sip_profileName folder.
  3. Delete all files in Tracing folder. Do not delete the folder itself.
  4. Clear DNS cache: in Command Prompt run ipconfig /flushdns command.

Curtosy of https://kb.intermedia.net/article/3238

 

Step 4 

Reboot PC – login.

You might need to wait a bit, and also clear out any old cached credentials from credential store.

 

Solved it for me.