Fixing Problem that Windows Mail App Account Settings Are Out of Date

I use Windows Mail app to access my Hotmail email account. It suddenly started complaining about "Account settings are out of date". The Mail app would ask you to "Fix" it, guide you to "Update" account information. It appears that the "fixing" process is successful. However, it does not fix the problem. It does not appear to even fix the problem when I delete the account and add it back in. Eventually I find out that I need to choose the right option other than the email type option list superficially seems to suggest when I add the account back in. Below are the steps.

1. Click on the "Settings" button on bottom of the left pane
2. Click on "Manage Account" from the "Settings" menu
3. Click on "Add Account" from the "Manage Account" menu
4. Select "Exchange, Office 365". Note that on the face value, the first option, "Outlook.com, live.com, Hotmail, MSN" seems to be the choice we should choose, after all the email account in question is a Hotmail account. In fact, for many users, the first option is not the right option because Microsoft  has gradually migrate Hotmail accounts to "Office 365". 
5. Enter a Hotmail address and password