1) There are about 200 versions of HostMonitor. Which one do you use?
2) Why do you think this is bug?
If you think Exchange does not return such error to HostMonitor, you may check network packets using some analyzer, e.g WireShark.
I think Exchange server may return such error for various reasons. You should check Exchange logs and Microsoft tech manuals/forums.
E.g.
If there are other connection at the same time (e.g. other tests) you may try to increase "maximum connections from a single user" Exchange option.
In other cases enabling IMAP protocol logging helps to fix such errors
>Set-ImapSettings -Server <servername> -ProtocolLogEnabled $true
Please don't ask us why, ask Microsoft
Regards
Alex