Only fix that has worked for us so far is rolling back to previous version of Outlook
Here it is if anyone else needs:
At the command prompt, run the following commands:
cd %programfiles%Common FilesMicrosoft SharedClickToRun
officec2rclient.exe /update user updatetoversion=16.0.8326.2107
Don’t forget to disable updates until Microsoft gets around to fixing this.
Outlook – File – office account – office updates – update options – disable updates
Thanks to @Sean Varley & http://www.brucebnews.com/2017/08/outlook-and-the-never-ending-password-prompt/