If you only needs the VPN, you can disable the proxy. But if you need the Anti-virus and Web Filtering. For outlook and live mail just enable the Pop3s or encrypted Pop3 using port 995 from Properties > Advanced.
FYI I ran into this same issue awhile back.
https://forum.fortinet.com/tm.aspx?m=113423
We've since moved on from using the POP3 server so obviously we don't have the issue but I will say I remember seeing some improper AUTH strings from the client in my POP3 logs on the server. When you disable the Forticlient proxy the client would communicate with the server properly. It was something that happened out of the blue after running Forticlient for quite some time so it had to be something that was updated at some point.
Now I have a new issue where the Trusteer Rapport security plugin that several banks require is somehow conflicting with Forticlient causing continual blue screens.
Good luck!
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