3.1.5.1.3.1 Error from NTLM

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If the NTLM subsystem reports an error, the client MUST change its internal state to completed_authentication and consider the authentication to have failed. The client can then take any action it considers appropriate; these extensions do not mandate any specific course of action.

Typical actions are to try other IMAP4 commands that are not related to authentication or to disconnect the connection.