Hotmail template config for mutt, just insert your mail account and password to "imap_user" and "imap_pass", if 2-factor is enable, generate an app password.

muttrc

set ssl_starttls=yes
set ssl_force_tls=yes

set imap_user = 'user_name@hotmail.com'
set imap_pass = 'password_here'
set from= $imap_user
set use_from=yes
set realname='Your_Name'
set folder = imaps://imap-mail.outlook.com:993
set spoolfile = "+INBOX"
set postponed="+[hotmail]/Drafts"
set mail_check = 100
set header_cache = "~/.mutt/cache/headers"
set message_cachedir = "~/.mutt/cache/bodies"
set certificate_file = "~/.mutt/certificates"
set smtp_url = "smtp://$imap_user@smtp-mail.outlook.com:587"
set smtp_pass = $imap_pass
set move = no
set imap_keepalive = 900
set record="+Sent"