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In September 2021, we announced that effective October 1, 2022, we will begin disabling Basic authentication for Outlook, EWS, RPS, POP, IMAP, and EAS protocols in Exchange Online. SMTP Auth will also be disabled if it is not being used. See full announcement: Basic Authentication and Exchange Online – September 2021 Update.
https://docs.microsoft.com/en-us/exchange/clients-and-mobile-in-exchange-online/deprecation-of-basic-authentication-exchange-online#when-will-this-change-take-place

“Basic “Basic Auth" (basic authentication) means or “basic authentication” appears to mean authentication with only a user name and password. See What is “SMTP AUTH”?

Today, we are announcing that, effective October 1, 2022, we will begin to permanently disable Basic Auth in all tenants, regardless of usage, with the exception of SMTP Auth.

IMPORTANT: Sometime in second and third quarters of 2022 we will selectively pick tenants and disable Basic Auth for all affected protocols except SMTP AUTH for a period of 12-48 hours. After this time, Basic Auth for these protocols will be re-enabled, if the tenant admin has not already re-enabled them using our self-service tools.
https://techcommunity.microsoft.com/t5/exchange-team-blog/basic-authentication-deprecation-in-exchange-online-may-2022/ba-p/3301866

Excerpt
hiddentrue
nameInternal Notes

https://docs.microsoft.com/en-us/powershell/exchange/app-only-auth-powershell-v2?view=exchange-ps Exchange Online PowerShell,
Exchange Online V2 PowerShell module (abbreviated as the EXO V2 module) it's been easy to manage your Exchange Online settings and protection settings from the command line using Modern authentication. The EXO V2 module uses Modern authentication and works with multifactor authentication (MFA) for connecting to all Exchange-related PowerShell environments in Microsoft 365: Exchange Online PowerShell, Security & Compliance PowerShell, and standalone Exchange Online Protection (EOP) PowerShell.

The overall scope of this change now covers EWS, EAS, POP, IMAP, Remote PowerShell, MAPI, RPC, SMTP AUTH and OAB.

What is

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SMTP AUTH?

Microsoft publications and announcements avoid giving a clear, explicit definition of SMTP AUTH. They do define what Basic Authentication means and then use SMTP AUTH in the same sentence.

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