Outlook and Hotmail not working - email issue, message not delivered, send receive problem

Many users have reported that they are facing problems with Microsoft Outlook and Hotmail (Web, Client, Android/iPhone App). The email is not delivered to the recipient and emails are not being received.

Microsoft update

Microsoft successfully reproduced the issue and they are analyzing the diagnostic logs to identify a fix. Identified an email transport authentication component that became misconfigured and are developing mitigation steps to restore email delivery.
You can find the status and updates here - https://portal.office.com/servicestatus

We're having issues,
but we're working on it.

Title: Emails aren't delivered to recipients
User Impact: Users can send email but the messages aren't being delivered to the recipient.
Current status: We've identified an email transport authentication component that became misconfigured and we're developing mitigation steps to restore email delivery.
Start time: Saturday, October 3, 2020, at 7:00 PM UTC
Next update by: Sunday, October 4, 2020, at 10:00 PM UTC

Title: Emails aren't delivered to recipients
User Impact: Users can send email but the messages aren't being delivered to the recipient.
Current status: We've developed and successfully tested a fix that will address the issue. We're now in the process of applying the fix to restore email delivery.
Start time: Saturday, October 3, 2020, at 7:00 PM UTC
Next update by: Sunday, October 4, 2020, at 10:00 PM UTC

Comments: