Hi @Rising Flight ,
The recommended practice is using Modern Authentication when connecting with Microsoft 365 service, but according to the official article, "there are no plans to disable Basic Authentication for SMTP AUTH clients at this time.". So, it doesn't appear to be the cause in your case.
With the above being said, it's recommended to go through the instructions in the document below and double confirm if all the requirements have been met for this setup to work.
How to set up a multifunction device or application to send emails using Microsoft 365 or Office 365
And if it still doesn't work, you can also take a look at the other methods provided in the above link to send emails from the application.
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