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Apple started requiring application specific passwords/keys for iCloud access for apps that use iCloud data when 2 factor authentication is active. I first encountered this issue with Fantastical.
If you see this prompt, log into your iCloud account and create an app-specific password. Enter that new password in the prompt, and everything seems to be good now.
Using app-specific passwords - Apple Support
Email From Apple Explaining This Issue said:Thank you for using two-step verification to protect your Apple ID and the data you store with iCloud.
This is a reminder that starting tomorrow, app-specific passwords will be required to access your iCloud data using third party apps such as Microsoft Outlook, Mozilla Thunderbird, or other mail, contacts, and calendar apps.
If you are currently signed in to a third party app using your primary Apple ID password, you will be signed out automatically when this change takes effect. You will need to generate an app-specific password and sign in again.
To generate an app-specific password:
1. Sign in to My Apple ID (https://appleid.apple.com)
2. Go to Password & Security
3. Click Generate App-Specific Password