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Office 365 - All Mac Users are being prompted for passwords from Exchange post OSX Mavericks upgrade

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Our company is using Office 365. We have half a dozen Apple Mac users who have been running fine using Outlook for Mac 2011 (version 14.3.8). When Apple released OSX 10.9 (Mavericks) most of the users upgraded and since then all of them are seeing the following behavior when Opening Outlook for Mac: 

Mail found not be received at this time.

The server for account 'mycompanyname' returned the error "Logon failure: unknown user name or bad password." Your username/password or security settings may be incorrect. Would you like to try re-entering your password?"

Yes or No

If the user selects "yes" and re-enters the password, the user is prompted a second time for the password. Upon entering the password twice, the authentication is accepted and Outlook for Mac connects to Office 365. However this connection only stays active for about an hour before the error "An unknown error occurred in Outlook"happens, forcing the users to close Outlook and repeat this process. 

Note that users are scattered throughout the US, some being in our corporate office, some being at home using ISP provided broadband connections, others finding this behavior happening at various hotels. 

I have been searching various Microsoft user groups for any information about why this is happening or how to resolve it, but most of the suggestions are from people who believe the issue is isolated to a single machine so the advice turns into client side troubleshooting for a specific machine. 

Any insight on why this is happening? 

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