@Chris
It is strange that your latest version of outlook is still using basic authentication. Earlier we have seen scenarios where there were lots of attacks that used to happen on IMAP and POP protocols. To overcome this and to make authentication more secure, we got the concept of modern authentication.
To know why your outlook is not making use of modern authentication you will have to open a separate thread with exchange online team.
However, to fix this issue for now, you can use conditional access policy in Azure AD and configure some range of IP addresses or configure named locations which you can use in conditional access policy. This policy will block or allow requests which are coming from specific defined IP address ranges or specific named locations.
You can follow below article as well to configure the same,
https://learn.microsoft.com/en-us/azure/active-directory/conditional-access/location-condition
Let me know if you have any further questions.
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