We are aware of this issue and are working towards a solution in a future release of Essentials for Office 365.
As a temporary workaround follow the steps below:
A) Authenticate to SharePoint Online using an account excluded from MFA/SSO or any two-step authentication, using the "Connect" button
Or
B) After providing the credentials with the "Claims" option, click "Next" then give Essentials a minute to process the request, some environments may allow the connection to be established
Note: Claims Connection goes to loop in some environments and the connection cannot be finished as a result.
Essentials for Office 365 2.14 - Release Notes (quest.com)
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