Hi Kerry,
We don't have an authenticationpolicy created at this time, get-authenticationpolicy returns no data. We are blocking basic authentication at the OS level for Windows 10 computers by setting Allow basic authenication to disabled in the GPO Computer Configuration\Policies\Administrative Templates\Windows Components\Windows Remote Management (WinRM)\WinRM Service.
Here is what I use to connect to Exchange Online via powershell:
Import-Module MSOnline
$O365Cred = Get-Credential
$O365Session = New-PSSession -ConfigurationName Microsoft.Exchange -ConnectionUri https://ps.outlook.com/powershell -Credential $O365Cred -Authentication Basic -AllowRedirection
Import-PSSession $O365Session
Connect-MsolService –Credential $O365Cred
Connect-AzureAD –Credential $O365Cred
-Geoff