Configuring preferences and options in Outlook.com
For Outlook.com in Thunderbird, the most likely cause is that the account is still using basic authentication or the OAuth sign-in flow is not completing for SMTP. Outlook.com requires modern authentication for third-party mail apps such as Thunderbird.
Try this in Thunderbird:
- Open ≡ > Account Settings.
- Select Server Settings for the Outlook.com account.
- Set Authentication method to OAuth2 instead of Normal password.
- In the left pane, select Outgoing Server (SMTP).
- Select the Outlook.com SMTP entry, then choose Edit....
- Set Authentication method to OAuth2 instead of Normal password.
- Save the changes with OK.
If it still fails, remove the Outlook.com account from Thunderbird and add it again. Re-adding the account lets Thunderbird detect the proper modern authentication settings automatically.
If Thunderbird shows a password prompt or the browser handoff does not complete, that matches the documented Outlook.com issue with non-Microsoft mail apps that must switch from basic authentication to modern authentication.
If the SMTP settings are not being detected correctly, get the SMTP settings from the mail provider and try the advanced/manual setup again.
No supported information indicates that new Outlook.com accounts have an SMTP sending block that can be removed through this channel.