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Can Event Action emails sent through an Office 365/Exchange Online SMTP connection use modern (OAuth 2.0) authentication instead of legacy basic authentication, given Microsoft's move away from basic auth?

Answer

Yes — OAuth 2.0-based authentication for the mail transport connector sending through Office 365 is supported, covering the legacy-basic-auth deprecation Microsoft has been rolling out; setting it up involves registering an app in Azure with the appropriate mail-sending permissions and configuring the connector to use that app's credentials rather than a stored mailbox password.

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