We use the SMTP settings to send Two-factor codes by email. We use the Office 365 service for the email delivery. To increase security we would like to have an option for modern authentication.
See also https://techcommunity.microsoft.com/t5/exchange-team-blog/basic-authentication-and-exchange-online-july-update/ba-p/1530163 for more information.
Somewhere in the future the support for basic authentication for SMTPwill be dropped.