We require Windows Hello in our environment, but one user is using New Outlook with an add-in that relies on Microsoft 365 for single sign-on. When the user signs in, New Outlook opens the authentication page in Edge and automatically attempts to use Windows Hello. The application currently expects a username and password, so authentication fails. Changing Edge settings and setting Chrome as the default browser has not helped, since New Outlook appears to use Edge regardless. We also cannot remove the saved passkey because it is tied to the Windows Hello requirement. Is there a way to make this sign-in prompt use username and password, or otherwise work around the conflict without disabling Windows Hello?
3 Answers
First verify whether the application officially supports New Outlook. If it does not, the practical workaround may be to use Classic Outlook or the web version until the integration is updated. Changing the default browser probably will not help if New Outlook is intentionally using Edge for its web-based authentication.
If the application can be updated, adding support for Windows Hello or modern passwordless authentication would be the cleanest fix. Otherwise, look for a “Sign in another way” or equivalent option on the Microsoft 365 prompt. If that option never appears and Hello is selected automatically, the app or its authentication flow may not support offering alternate methods.
Treat this as an authentication-policy or application-compatibility issue rather than just an Edge setting. Check the Microsoft Entra sign-in logs and inspect the authentication details and conditional access results. That should show whether Windows Hello is being selected by policy, whether the app is requesting an unsupported method, or whether the sign-in is failing for another reason.

The application supports Windows Hello, but other users still need username-and-password authentication and only one method can currently be configured. In this case the prompt automatically tries Hello and fails without offering another sign-in option.