Thanks for this helpful response.
It is good to know that I must delete and reinstall my iCloud account as I had hoped I would simply have to just enter the new password when it was generated by Apple. (This issue is found with both Ms Outlook and W10 Ms Mail.) It is also helpful to see that one must include the dashes as I got the same kind of formula from Apple ID #1 .
In the meantime, I finally made some progress on two-step verification with Apple ID #3 . However, Apple now insists I must wait 72 hours before the next step so I am not positive this will resolve my issue or not since I cannot access Apple ID #3 on an Apple device.