Computer Help and Support

A quick search shows that this is indeed true and the email is not a scam.

I don't use hotmail or outlook, so can only go on what I read online. They are updating security so you will no longer be able to check an Outlook or Hotmail account by usinging only your username and password.

Since you are already this far down the rabbit hole, I think the most simple way to fix this is do what it says on this page.

https://support.microsoft.com/en-us/account-billing/sign-in-using-microsoft-authenticator-582bdc07-4566-4c97-a7aa-56058122714c

Sign in using Microsoft Authenticator

I can't be much more help than this, but if you go to the microsoft support page, follow the two links above, which are near the top, it should be your solution.

Good luck with all this, I understand how confusing and difficult it must be for you, but rest assured, it's not a scam and someone local may be able to assist you further.