All Office 2016 client applications support MFA through the use of the Active Directory Authentication Library (ADAL). This means that app passwords aren't required for Office 2016 clients. However, you need to make sure your Office 365 subscription is enabled for ADAL, or modern authentication.
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To enable modern authentication, from the admin center, turn on the new admin center by selecting Try the new admin center toggle located at the top of the Home page.
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Select Settings > Services & add-ins and then choose Modern authentication from the list.
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Check the Enable modern authentication box in the Modern authentication panel.
