I think I have the same issue as you, with a Hosted email provider and the same UserPrincipalName for our users and their email accounts. And I don't believe the other answers have the problem in the right order[1].
When Outlook tries to use the local credentials to open the Hosted Email, it fails gracefully and asks for the password. You put in your Hosted Email password, and Outlook makes a connection and is happy. But then in the background, Outlook seems to use the Hosted Email password to try to connect to your local Active Directory, and not only tries once but tries repeatedly and silently locks the AD account.
This is exactly what is happening to us right now, about 8 years after you raised the question/issue. Did anyone ever come up with a real solution?
One workaround is to set a different UPN for users, then it doesn't match and it won't lock the account. It's still a bad alternative, as we get thousands of "bad user" messages in AD when Outlook tries and fails on the username. And for us, it's unworkable as we are now migrating to O365 and need the UPN to be correct in order to use AD-Connect.
[1] The reason I'm criticizing the other answers is they are inferring the local AD credentials are being passed to the Hosted Email, and if that were the case the Hosted Email accounts would be getting locked out, not the local AD accounts. Completely different.