Using classic Outlook for Windows in business environments
@Robdstef,
If you have M365 Personal the best experience would be to use the M365 Outlook that is part of your subscription. It connects with modern auth and is not affected by this recent issue. If you prefer Thunderbird, it would be best to follow the guidance of Thunderbird to use OAuth as noted in this article, Microsoft OAuth Authentication and Thunderbird in 2024 | Thunderbird Help (mozilla.org). I will keep sharing feedback to the service team to work on addressing the issues with basic auth, but you could skip all that with the other two options you have. Modern auth is also a more secure connection method so worth the effort to switch if you can.
This is, to the best of my knowledge, not true? I have this issue, and I'm running version 2401 (Build 17231.20194 CtR) with M365. The issue doesn't seem to be isolated to older builds.