Hi @MJ1126 ,
This is due to the new MS authentication which Apple does not seem to have in this MAC OS 10.13.06 version.
Exactly. It's no longer possible to set up the Exchange online account using the IMAP protocol on an application which doesn't support OAuth 2.0.
As indicated in this official article, with the deprecation of basic authentication in Exchange Online, OAuth 2.0 authentication is required if your application needs to access IMAP protocol in Exchange Online. However, from the content from Apple, seems like it requires macOS 10.14 or later.
Integrate Apple devices with Microsoft Exchange
(Please Note: Since the web site is not hosted by Microsoft, the link may change without notice. Microsoft does not guarantee the accuracy of this information.)
Given this, I'd recommend setting up the mailbox as an Exchange account instead of using IMAP.
Set up email in Mac OS X Mail
Or you can consider using Outlook on the web (https://outlook.office365.com)as an alternative.
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