Dear Soumik Paul,
Good day! Thank you for posting to Microsoft Community. We are happy to help you.
I understand that you have a query on the deprecation of Basic Authentication. Please correct me if I am wrong.
Thank you for your time and efforts on researching on this from your end.
Will Microsoft disable basic authentication from code for SMTP protocol?
Per this section from our official article, it seems it will not be disabled. For reference: Deprecation of Basic authentication in Exchange Online | Microsoft Learn
SMTP AUTH will still be available when Basic authentication is permanently disabled on October 1, 2022. The reason SMTP will still be available is that many multi-function devices such as printers and scanners can't be updated to use modern authentication. However, we strongly encourage customers to move away from using Basic authentication with SMTP AUTH when possible. Other options for sending authenticated mail include using alternative protocols, such as the Microsoft Graph API.
Meanwhile regarding the date mentioned above kindly omit for now in regards to your question since Basic authentication is not yet permanently disabled.
On another articleNote - you can re-enable basic auth for SMTP Auth by yourself and follow best practices; see this article.
We look forward to your response. Thanks for your cooperation.
Sincerely,
Anesu | Microsoft Community Moderator