In September 2021, Microsoft announced that effective October 1, 2022, they 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.

The transition from Basic Authentication to OAuth 2.0 options.
The 2 options are: