1000% correct. Hotmail isn’t working for me either. 2 accounts have gmail and no problem at all setting up their accounts. This new person already has a mycloud account for work so she can’t use that email. Guess what. Her 2nd email is hotmail.
I don’t think there is anything we can do, it’ll be down to WD to sort it with Hotmail. We’ll have to stick to using anything other than Microsoft emails annoyingly! Would be nice to have some feedback from WD themselves.