I did some research on Publishing Outlook addins in Appsource. There is a slight confusion on whether SSO addins are accepted in AppSource or not. I have found an requirement document on the Appsource site that SSO is an requirement however, on the SSO addin site it mentions SSO addins are not accepted in AppSource. Please help me on this :)
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The documentation you linked to is correct. As of January 2020:
The Single Sign-on API is currently supported in preview only. It is available to developers for experimentation; but it should not be used in a production add-in. In addition, add-ins that use SSO are not accepted in AppSource.

Outlook Add-ins Team - MSFT
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Any updates on this ? I am redeveloping my addin to utilize oauth2 and graph API. It was little confusing for me to get started as there is lot of documentation and samples which are outdated. This is what I have been suggested [https://stackoverflow.com/questions/66952294/how-to-get-eml-or-base-64-of-an-email-message-in-outlook-365-web-addin] . This is worrysome, I have to reconfigure everything if SSO are not supported in Appsource – Asmi Apr 29 '21 at 10:37
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SSO add-ins are supported in AppSource now. – Outlook Add-ins Team - MSFT Apr 30 '21 at 01:38