Thunderbird 153 native Exchange (EWS): "Login to account John.Doe@example.com failed." popup every time I click a message, but "Retry" or "Cancel" works instantly. Why?

Hi everyone,

I'm running Thunderbird 153 on Ubuntu 24.04 and trying to access an on-premise Exchange server (fetching emails from owa.example.com).

Whenever I click on an email, a window pops up saying:

I am given the option to re-enter my password or click "Cancel" or "Retry". When I click "Retry" or "Cancel", it fetches and displays the message immediately without needing to re-type the password. The password itself is definitely correct.

Why does this error message appear every single time I click on a message, forcing me to click "Retry" continuously? Has anyone run into this issue or knows a fix?

Thanks in advance!