This error has been occurring for the past six months or so and shows a yellow bar across OneNote saying the above message. This can be fixed by doing the following:
- Search start menu for ‘Credential Manager‘
- Click ‘Windows Credentials‘
- Look for ‘MicrosoftOffice 16_Data:live:cid=‘ and delete/remove it
- Sign in to OneNote again
The message should no longer appear and the problem should be resolved.