I have a Microsoft account, I'm using office 365 and One Note. My account was given to me by the university(student account). I just got 5th gen Ipad and downloaded One Note. When opening One Note he pops an error saying "One Note Couldn't Setup Your First Notebook" and under the error there is an "Sign in" button. When trying to "Sign in" by signing in to my Microsoft account I enter the password and then after 2 sec One Note pops the same window again.
The password is correct and the weird thing is that I managed to enter other Microsoft tools such as One Drive with the same account name and password.