2FA Authentications
When connecting XrmToolBox to an environment where 2FA is enabled, the following error can occur:
Error: An unsecured or incorrectly secured fault was received from the other party. See the inner FaultException for the fault code and detail.
I found this issue when I started working on a new project and didn’t realise 2FA is enabled. Thankfully found Nishant Rana’s post that gave me hint.
Solution ?
Log in using “SDK Login Control” instead of “Connection Wizard” and follow these instructions.
and in next window select your D365 CE instance.
Proxy Settings
In environments where proxy server is placed, again XrmToolBox might not connect. To setup XrmToolBox with proxy server navigate to:
Configuration > Settings > Proxy
If Proxy configurations are set in IE “Use Internet Explorer Configured Proxy” option can be selected. Otherwise, choose “Use custom proxy” and complete the configurations with your proxy server details.
I hope you will find these tips helpful
Let’s Connect 
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Yawer Iqbal 