I don't know about any 2 steps verification off message as I didn't get that, but if it tells you that, then you should look online on how to disable that first.
If you want to add the Exchange server account just go to the email app and the 3 dots at the top right, then settings, Manage Accounts, Plus Sign, Enter your information and hit the Manual Setup, Select Microsoft Exchange ActiveSync and be sure to include your whole email address as your username in the Domain\username field, like this \user@hotmail.com, then in your Exchange Server enter; bay404-m.hotmail.com . Then complete the following steps ad be sure to select Push as your options pulling emails.