Hi Hardik Jogadiya,
Welcome to Microsoft Q&A forum.
The error that you are seeing indicates that the server is rejecting SMTP AUTH for that mailbox.
If this is a personal Outlook.com account (For example: @outlook.com/@hotmail.com), you will not have the Microsoft 365 Admin Center "Authenticated SMTP" switch because those settings apply to Exchange Online tenants.
For personal Outlook.com mailboxes, the supported approach for app/script sending is OAuth2 for SMTP: register the app, obtain access token and authenticate using SASL XOAUTH2 with the scope "https://outlook.office.com/SMTP.Send".
For your reference: Authenticate an IMAP, POP or SMTP connection using OAuth
If your sending tool cannot do OAUTH2/XOAUTH2, you will need to use Outlook web/app or switch to a client that supports OAuth2 SMTP
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Thank you so much and I hope you have a great day.
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