Hotmail does not work if you have 2 step verification, the application keeps asking me for the code, when I do not get the code neither in my phone nor my mail. I have also tried to log in by creating an application password in microsoft, (with this application password is supposed not to ask for a code) but it is still asking me for a code that I do not receive.
Advice for you
I got X-notifier working for all my emails , gmail, hotmail , Aol what you got do is put in your emails than add the password than press okay ..you got to add each email one at time with the password than press okay..make sure your browser is able to accept cookies..make sure your history isn't deleting the saved emails..if you delete history than refresh your emails along with the password or disable your X-notifier than refresh your browser ...i did this with both Chrome and Firefox had no problem with the X-notifier working once it was updated..your 2 step verification is something you want take up with Hotmail it's easy but can be hard to learn.