...
Required. Enables opening of items in Outlook.
Other information
...
Conditional Access:
Make sure that you don't have any conditional access rules which disable access to Office365 applications. Check if there is no restrictions for index user's location, device etc...
Also in 'Grand' tab under Access Control "MFA" shouldn't be checked, because connector doesn't support it.
For more info see: https://docs.microsoft.com/en-us/azure/active-directory/conditional-access/howto-conditional-access-policy-block-access