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Using Office 365 Modern Authentication. Modern Authentication needs to be enabled within the Exchange Online tenant. When you use modern authentication your users authenticate interactively with a web dialogue that belongs to your identity provider Azure AD rather than a dialogue the OS Windows or application Outlook Thunderbird itself owns.
Outlook 2013 and newer clients that support Modern Authentication do not preclude the use of Basic Authentication. Alternatively you can download the module from here. As of October 2020 Office 2013 will no longer be able to connect to Office 365 cloud resources such as Exchange Online and OneDrive for Business.
Modern Authentication needs to be enabled within the Exchange Online tenant.
The reason these old legacy auth protocols are still needed is often older apps andor devices. And more importantly modern authentication supports and can enforce multi-factor authentication MFA which is often a driver for blocking legacy authentication altogether. As Microsoft implements modern authentication across Office 365 administrators need to understand how to use and control the authentication framework to avoid disruptions. Alternatively you can download the module from here.