Hi I turned 2 factor authentication for bitbucket but it seems that source tree does not support 2 factor authentication. Is this correct or am I doing something wrong, Basically I lost the ability to clone my repo and update them.
You will have to use "App passwords" as Sourcetree does not support 2FA yet. See this link on how to create one - https://confluence.atlassian.com/bitbucket/app-passwords-828781300.html
Make sure to save this password, as it is displayed only once. We gave read/write permissions to the Repositories. We still got the authentication error first time, but second time worked like a charm.