I used a @hotmail.com email address, here is what it says:
There is a problem with your login. Please be sure you are using a Microsoft account with an XBox Live account associated and that you have authorized access to your profile information if prompted.
Maybe "@hotmail.com" is not considered a microsoft account ?
What are you using (@outlook.com) ?
Same here. Resolved by:
1. logging in through https://account.xbox.com/
2. click profile picture top right corner and click profile
3. Privacy settings
4. Privacy and Online Safety > Privacy
5. Allow all "Microsoft Can" options (possibly not all needed but don't know which ones required so..)
My old university email that was linked to microsoft when I signed up for visual studio i think? Not sure if this will still work, was a few years ago.