Manager Desktop version 22.12.15.553 (just upgraded as a troubleshooting step)
Win7 Pro
I have attempted a purposefully incorrect password and receive the same error, so I suspect that this is an auth negotiation issue. Thoughts?
Have you read this Guide and followed all relevant links: Troubleshoot email issues | Manager?
I also doubt your provider wants either of the troubleshooting options to be checked.
I followed that article which is what gave me the settings for O365, and the suggestion on what to include in this forum posting. I am installing on Windows 10 at the moment to eliminate any possible Win7 issues there may be with SSL.
Works with Desktop version 22.12.16.555 too 
My apology, @David_Brown. After seeing @Joe91’s settings I realized I misled you about the second troubleshooting option. That has seemed backwards to me since it was introduced. You check the option if you want to use the common format, which was the default before the option was added. In other words, you uncheck it to troubleshoot.
My Windows 10 upgrade fixed the issue. I am going to assume there is some kind of SSL/TLS problem in Win7 that prevented this from working. Thanks for the help guys, Windows 10 was the solution.