So I have two step verification enabled on my Microsoft account and I always get asked for the code. Just now I was having some problems in Outlook 2013 so deleted the profile and created a new profile. Added my email address and I was able to set it up just by using the password. Previously I had to use the app specific password which I have saved somewhere but this time for some strange reason only the password worked. I am quite concerned, anyone else experienced this. Straight after this I logged in to my microsoft account in the browser and was asked for the code after password.