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Authentication Issue

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We are using Dynamic CRM 365 online, My scenario is, we have a security layer while logging in CRM. 1). I, Log in using the CRM Credential 2). Then it will take me to a page, where i need to enter authentication code, which i will get on my mobile using some app.

The issue is being, whenever i want to connect CRM using Visual Studio for Plugin Development or SSRS Reports, its throwing error as follows, 

I would like to know, what is the reason for this issue & how this issue can be solved  


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