Outlook prompting for password after password change

I have a client who has Exchange 2013 and the PCs run Windows 8.1 with Office 2013.
The users just started having the following problem. Their domain passwords are expiring and when they update them with a new one, Outlook starts prompting them for a password when they open it and periodically while Outlook is running. They keep entering
the new password and checking the box to remember it, but the password prompt keeps coming back.
I've checked and the account in Outlook does not have the box checked to always prompt for logon credentials. I did notice that the proxy authentication is set for NTLM so I changed it to Basic, restarted Outlook and there was no password prompt and the
user has not seen one since.
Any idea why having the proxy authentication set to NTLM would cause this after the domain password changed? It has been set to NTLM rather than Basic for years now. Exchange 2013 has been in use there for about 6 months and Office 2013 longer than
that. Windows 8.1 has been on the computers for 3-5 months so I don't think that's it either. I've tried with our domain account we have setup there and with a test user account by changing the password on them but with the proxy authentication set to NTLM
I haven't had the password prompt appear other than once the next time Outlook is opened after the password change, and that is to be expected.
So it's not every user account but a good number of them this is happening with.
Jonathan

I have an update.
There must be a GPO or setting in Outlook changing the proxy authentication to NTLM because this morning it was changed back to NTLM from Basic. They all either shut down or restarted their computers since I worked on them Friday.
One user got the password prompt one time when starting Outlook. She entered the password and that was it. But she was unable to connect to a shared calendar. She put her computer to sleep, woke it up, logged in, and then was able to connect to the shared
calendar. I don't understand that.
Another user could not get the password prompt to go away this morning no matter how often he input his password, and he also was unable to connect to the shared calendar. So I changed the proxy authentication back to Basic again, restarted Outlook (which
is required), got no password prompt, and he was able to connect to the calendar.
I realize the calendar issue is tied to the password issue. What I don't understand is why these people are getting the password prompt ever since they changed their domain password.
I have a test account and test PC set up in a VM and it does not have any of these problems. I've changed its password 3 times but I never get a prompt when opening Outlook and it is set to NTLM.
I hope someone out there has an idea why changing their password now is causing this authentication problem in Outlook.
Jonathan

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From your description, only some users have an issue that Outlook prompts for username and password. In your case, I recommend you compare the normal and problematic Outlook settings. Here is the Outlook settings in my environment for your reference:
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Hope this can be helpful to you.
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We can also follow this forum FAQ to troubleshoot this problem:
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Outlook prompting for password after password change

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