Most organizations today are using Azure AD and the absolute recommendation is to use 2FA in as many scenarios as possible… in some that is not possible… then there is an option to use an application password (this should be uses in special cases and you should never use it on an Admin Account). To create an App Password you do the following:
- Log in to https://portal.office.com
- In the upper right corner click your profile picture and select “My Account”
- Go to “Security and Privacy” and click “Create and manage app passwords”
Note: If you are not able to see the Additional Security verification you can go directly to the link: https://account.activedirectory.windowsazure.com/AppPasswords.aspx … here you can create an app password.
- To create a new app password click create
Links:
https://docs.microsoft.com/en-us/azure/active-directory/user-help/multi-factor-authentication-end-user-app-passwords
https://community.spiceworks.com/topic/2034065-issues-with-o365-app-passwords