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UPDATE: IT IS WORKING!

Someone on the Apple Community posted the below. I followed it, and it is working. And, both on my MacMini 15.7.1 and Tahoe MBP...

"What fixed the problem for me on my Macbook Air '13 (2025) is adding multiple accounts before adding Microsoft Exchange, such as Yahoo, Google etc. After that I tried it again, and worked without “failed authentication or unverified account” problems."
 
Something must have changed as I already had 2 iCloud, 1 gmail and 2 Spectrum accounts already setup. Hey I'm just glad it's working... Also I did not have to do a "app specific" password for my accounts. It was able to tell the difference between password only and MFA.
 
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The issue seems to have been fixed. I was able to add 2 Outlook accounts to the Mac Mail app without any hurdles.
 
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