Outlook Integrations Issue - Server Unavailable - EWS GetFolder

Hello,

I'm encountering an issue while conducting an Outlook Integration demo for an existing client.

I created a Trailhead Playground org, created an User+email with Outlook LIVE. 

I've successfully added the Salesforce Add-in to my Outlook app (Microsoft Outlook version 1.2025.404.500), and I’m able to log in on SF with my credentials.  

I can create standard objects using the global (quick) actions without any problems.

However, I'm unable to log emails to a Contact and others standard objects. The interface becomes unresponsive—nothing is clickable, and I’m forced to navigate back.

To troubleshoot, I installed the Salesforce tools add-in and found the following error:

Failed to make EWS call for getFolder  

The remote server returned an error: (403) Forbidden  

I have not selected Einsten Activity Capture for this user.  

Can someone please help me? Thanks in advance.