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Every time I create an App Password for SourceTree I am able to login. For a few days it will work fine any time I want to commit or pull. Then one day the password just stops working.
It is always when I first try to do something that day but it seems to happen every 5-10 days.
I have gone through this cycle of creating a new App Password for SourceTree about 8-10 times now since being forced to switch.
It is a real PITA.
Sorry to hear about this problem. There is a related community post that I think might apply here. Please see https://community.atlassian.com/t5/Sourcetree-articles/Bug-Fix-Sourcetree-for-Windows-authentication-error-when/ba-p/1965968
In that post David outlines some steps you can take to work around this problem.
I hope that helps.