You must turn off Two-Step Verification while creating a third-party app password.
Step-1
Go to AOL Security Settings and sign in with your AOL account credentials.
Step-2
In the dashboard, click on the Home Icon.
Step-3
Click your Profile Icon at the top right and select Account Security.
Step-4
Scroll down and click Generate app password.
Step-5
Choose your required application from the list and click Generate Password.
Step-6
A new app password will appear. Copy it carefully, then click Done. You can now use this password in your application.
After creating the app password, it is recommended to turn Two-Step Verification back on for better security.
Step-1
Go to https://login.aol.com/account/security and sign in.
Step-2
In the dashboard, click the Home Icon.
Step-3
Expand your Profile Icon and select Account Security.
Step-4
In the Two-Step Verification section, click Turn On.
Step-5
Choose your verification method, for example, Phone Number.
Step-6
Enter the mobile number where you want to receive the verification code or select the displayed option.
Step-7
Enter the verification code you received and click Next.
Step-8
Choose another way to secure your AOL account and click Add more account recovery options.
Step-9
Select either Email or Phone for recovery and click Next. (We choose Email.)
Step-10
Enter your recovery email address and click Next.
Step-11
Enter the verification code sent to your recovery email and tap Next.
Step-12
Double-check the information you added for two-step verification and recovery. Tap Next.
Step-13
A confirmation will appear that Two-Step Verification is enabled. Click Done.