You will get the activation prompt and then If account is already added you will see the password prompt for app and ADAL again If that.
Search 'Office' and delete everything.
Please check suggestions in this article to resolve this nuisance. So, whenever the issue arises in Keychain Access, Outlook for Mac Keeps asking for password office Why does Outlook / Asks for PasswordEstimated Reading Time: 2 mins. It is a default application in Mac and saves the information of email account login. We finally fixed the issue! Just an update on my situation.