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Can't connect to Dynamics 365 with Xrm.Tooling.Connector after 365 update

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Our organization uses Dynamics Online and this weekend received a major update from CRM 2016 (8.1) to 365 (8.2), and since then my apps can't connect using the Xrm.Tooling.Connector:

CrmServiceClient client1 = new CrmServiceClient(ConfigurationManager.ConnectionStrings["XrmPowerString"].ConnectionString);

On app.config I have the connection string

<add name="MyConnectionString" connectionString="Url=myorgname.crm.dynamics.com; Username=me@mydomain.com; Password=mypassword; AuthType=Office365" />

I get error:

Microsoft.Xrm.Tooling.Connector.CrmServiceClient Error: 2 : Unable to Login to Dynamics CRM

And also

Microsoft.Xrm.Tooling.Connector.CrmServiceClient Error: 2 : Source : mscorlib Method : HandleReturnMessage Date : 14/08/2017 Time : 01:46:02 Error : An unsecured or incorrectly secured fault was received from the other party. See the inner FaultException for the fault code and detail.


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