Few causes of the following error could be the below mentioned
(1) 3rd party SSO is implemented for Office 365, such as OKTA, BizLabs, etc.
(2) Permissions [the local user account that is used to launch Essentials is not added as part of the Farm Administrator group].
(1) 3rd party SSO is not supported. Use an account that bypasses the implemented SSO solution.
(2) Please ensure an account that is being used to to launch also has sufficient permissions to connect to the SharePoint sites.
(3) Verify if the proxy has been set correctly in the tool from the tool in "Help" tab and "Proxy Mode"
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