365 test email error

[gzelasco]

We have installed Snipe-IT 8.0.4 on a Hyper-V virtual machine and it works correctly
OS Ubuntu 24.04.2
Snipe version: 8.0.4 build 17611 (gfab1a6c33)
PHP version: 8.3.6
Laravel: 11.4.1
Database: maria-db v.15.1 distrib. 10.11.11

However, we are having difficulties configuring an email 365 account in Snipe-IT.

Following the online documentation, we configured the outgoing e-mail section in the .env file as follows:

MAIL_MAILER=smtp
MAIL_HOST=smtp.office365.com
MAIL_PORT=587
MAIL_USERNAME=[email protected]
MAIL_PASSWORD=[app password]
MAIL_FROM_ADDR=[email protected]
MAIL_FROM_NAME=SnipeIT
MAIL_REPLYTO_ADDR=[email protected]
MAIL_REPLYTO_NAME=SnipeIT
MAIL_AUTO_EMBED_METHOD='attachment'
MAIL_TLS_VERIFY_PEER=true

on test email send our fiddler reports the following error:

2cc
{"message":"Failed to authenticate on SMTP server with username "[email protected]" using the following authenticators: "LOGIN", "XOAUTH2". Authenticator "LOGIN" returned "Expected response code "235" but got code "535", with message "535 5.7.139 Authentication unsuccessful, the request did not meet the criteria to be authenticated successfully. Contact your administrator. [ZR0P278CA0099.CHEP278.PROD.OUTLOOK.COM 2025-05-21T06:49:31.892Z 08DD97430B9575EB]".". Authenticator "XOAUTH2" returned "Expected response code "235" but got code "535", with message "535 5.7.3 Authentication unsuccessful [ZR0P278CA0099.CHEP278.PROD.OUTLOOK.COM 2025-05-21T06:49:42.127Z 08DD97430B9575EB]"."."}
0

- The 365 email account [email protected] is active with MFA enabled. 
- Password is an App Password
- SMTP AUTH is enabled

We've run tests also with user password (without MFA enabled) but unsuccesfully

Someone can help us please ?

Thank you very much