I used a microsoft account, never had an xbox live subscription/game and it worked.
There is a problem with your login. Please be sure you are using a Microsoft account with an XBox Live account associated and that you have authorized access to your profile information if prompted.
Maybe "@hotmail.com" is not considered a microsoft account ?
What are you using (@outlook.com) ?I didn't change any settings though. Maybe I just needed to login on https://account.xbox.com/