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PROBLEM HAS BEEN SOLVED. So next day after woking up I was able to sign in as regularly. This is more like a Microsoft Server issue. So those who have this problem just wait for 1 or 2 days.

Did you solved the problem ? When did it started ?

Yes I can contact Microsoft .. When i click ''Ask our virtual agent" it works.

Yeah that is hard reset from the about section in settings. No Windows recovery tool used.

Thanks for replying.. But after factory reset there is no microsoft account or any account at the first place. So I am trying to add it for the first time.

So i was using lumia 720 as a daily driver. Downloaded many apps recently through store. But now after factory reset when I try to sign in the microsoft account it says - ( Can't connect . We can't connect at the moment. Wait for a little while and try again). The same problem occurs when i try...