Cannot configure my work exchange account on gmail app of pixel2

I have just bought google pixel 2. I have set up Microsoft company in tune application. Now when I'm trying to configure my work email address onto Gmail application I'm getting below error. While it is working fine on MS Outlook android application. I have checked with my company's IT department and they say that there's nothing wrong with my account as I'm able to configure it on another email client.

Error: you don't have permission to sync with the server. Contact your servers administrator for more information. (Status : 129)

Also there is no issue with the number of devices on which I can connect my work account, that is sorted.

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