Solved Password Not Recognized, cannot reset or recover.

This is regarding my mother-in-law's personal Microsoft 365 account which she uses for work and depends on heavily. She has A Microsoft 365 Premium account with 1 TB of storage. Luckily she does use OneDrive and her data is recoverable.

Her laptop crashed today so I was setting her up on one of my spares. When logging into her Outlook/ any Microsoft 365 App it fails authentication and says "Account or password not recognized"

We attempted to reset it. It did the exact same thing to the account that her recovery email was set to. She had to fill out that ridiculous identify verification form. It is basically just sending us in a constant loop and now her account is locked.

Has anyone see this before? Or, have an idea of where we can start to get this fixed? Desperate for help at this point....

You need to contact microsoft support to resolve the issue. It is not something that this forum can deal with. That is, to protect the original account holder's security.