RESOLUTON:
Outlook needs to use MAPI/HTTPS, and not RPC/HTTP, when provisioning/migrating to O365
If Quest MNE/Migrator still has the old references to RPC in the Global Default Settings and/or Template then try the following:
1. Removing everything below the [Exchange] Section in the Global Default Settings and/or Template
2. Close and restart MNE and configure the Exchange Server settings again