How to fix "BAD User is authenticated but not connected" error
First of all, check the official Jira Knowledge Base documentation for this issue and follow instructions there: https://confluence.atlassian.com/jirakb/imap-fails-with-a3-bad-user-is-authenticated-but-not-connected-error-in-jira-server-integrated-with-office365-665420269.html
If that does not help, start the authorization again, and it should require the account to log in.
After the successful authorization, we try to update the Username field by retrieving it from Microsoft. Make sure that the Username is updated after the successful Authorization according to the account used for the consent.
If the Username update is successful, it means that the configuration on the Microsoft side is incorrect in one of the following ways:
It is a shared mailbox and an incorrect login scheme is being used. For more details, visit the below link: https://docs.microsoft.com/en-us/answers/questions/162233/shared-mailbox-oauth-access.html
The account that you use is not licensed (or it is an F3 license that only allows for POP3 connections), in which case, you needs to apply or re-apply the license (on the Office 365 side).
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