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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.

Note

Microsoft does not clearly define what SMTP AUTH means.
I understand SMTH AUTH, Basic Authentication, and Basic AUTH means authentication with only a username and password.   
Contrast Basic AUTH with Modern Authentication /Modern AUTH.

Basic Authentication simply means the application sends a username and password with every request (often stored or saved on the device).

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Please note this change does not affect SMTP AUTH – we will continue supporting Basic Authentication for the time being.  There is a huge number of devices and appliances that use SMTP for sending mail, and so we’re not including SMTP in this change

– https://techcommunity.microsoft.com/t5/exchange-team-blog/improving-security-together/ba-p/805892

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