Opening a shared mailbox in Outlook 2013 (office 365) returns "Cannot Expand Folder" error.

Hi!
We've just upgraded from our old Domino email server to Office 365 E1 and running an on-premise Exchange 2013 hybrid server.
In Outlook 2013, when trying to expand a shared mailbox, It asks me to enter my outlook credentials. Trying so doesn't work and it continues to ask repeatedly. If I click cancel, I get the following error:
"Cannot expand the folder. The set of folders cannot be opened. Microsoft Exchange is not available.
Either there are network problems or the Exchange server is down for maintenance."
The error only occurs in Outlook 2013 and it happens to all staff who are using Outlook 2013. Shared mailboxes are accessible in Outlook 2010 and OWA with no issues.
I have tried recreating profiles, removing and re-adding permissions, disabling auto-mapping. I've tested with creating shared mailbox in Exchange Online and on our hybrid server.

Hi,
Check if the kb below matches your scenario:
https://support.microsoft.com/kb/2992644
This problem occurs only when the following conditions are true:
You are using Microsoft Outlook 2013 client version 15.0.4641.1001.
The client is connected by using Outlook Anywhere (RPC over HTTP).
To resolve this issue, apply the update that is described in the following article in the Microsoft Knowledge Base:
2889859
If you are using the Click-to-Run version of Office 2013, the Outlook application is kept up to date automatically. For more information about Office 2013 Click-to-Run updates, see
Microsoft Office 2013 Click-to-Run virtualization
I hope the information is helpful.
Regards,
Melon Chen
TechNet Community Support
It's recommended to download and install
Configuration Analyzer Tool (OffCAT), which is developed by Microsoft Support teams. Once the tool is installed, you can run it at any time to scan for hundreds of known issues in Office
programs.

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