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When attempting to complete the Pop3 fetching setup, I am getting the following error.
S +OK The Microsoft Exchange POP3 service is ready.
C USER helpdesk
S -ERR Command is not valid in this state.

I have looked through the forum section and was not able to find a solution to the error. Any assistance would be great.

Try enabling plain text in Exchange settings:

Set-PopSettings -LoginType PlainTextLogin

Don't forget to restart Exchange afterwards.