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It seems to be a temporary issue with Outlook.com. A lot of people are facing this issue right now. We are getting a large number of such requests. Currently Microsoft is having issues with the server and they are working on it. They expect this to be fixed in 2-6 hours. there is no issues with your emails/contacts, and that will not be lost.
Microsoft investigating an issue in which some users may be unable to access or use Outlook.com services or features. Please check the link below for curent status.
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