Since this issue only occurs on a specific user, if you configure another mailbox on this device, would the issue persist?
If another mailbox works, please have a check in Exchange Online if SMTP AUTH is enabled for this mailbox.
In Exchange Online Powershell:
Get-CASMailbox -Identity <EmailAddress> | Format-List SmtpClientAuthenticationDisabled
If the result shows $true, please set it to $false and see if it helps with this issue:
Set-CASMailbox -Identity <EmailAddress> -SmtpClientAuthenticationDisabled $false
Besides, please make sure TLS 1.2 is enabled on the device.
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