You have to use the app password facility to create a password for Outlook.
If there is incorrect information, Outlook keeps showing the password prompt.
You have to set up Yahoo Mail using IMAP.
If you have enabled two-factor authentication in your Yahoo Mail account, Outlook may not be able to go through that setting.
Why Outlook keeps asking for the password of Yahoo Mail If it doesn’t detect the setting, you won’t be able to use the Yahoo Mail account in Outlook. Outlook requires a specific option to be enabled in the Yahoo Mail account. While using the Yahoo Mail account, if it is unable to set things up, or if Outlook shows the password prompt for Yahoo Mail continuously, then these solutions will help you fix that issue. Although Outlook is one of the best email clients, it is not error-free.