2941790 - Authentication failed error when configuring SMTP for XS Classic or XS Advanced applications

When trying to configure SMTP for an XS Classic application (or XSA applications) the following error is observed

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Error: error authentication failed

Please check trace for more information.
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On xsengine.ini setting XSMail = debug trace, you can see

xsengine.trc

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[129574]{29574}[-1/-1] [timestamp] i XSMail SMTPConnection.cpp(00049) : Constructing SMTP Connection

[129574]{29574}[-1/-1] [timestamp]1 d XSMail SMTPConnectionHelper.cpp(00085) : S: 220 2.0.0 SMTP server ready

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[129574]{29574}[-1/-1] [timestamp] d XSMail SMTPConnectionHelper.cpp(00085) : S: 550 5.2.1 Mailbox cannot be accessed [AM0P190CA0022.EURP190.PROD.OUTLOOK.COM]

[129574]{29574}[-1/-1] [timestamp] e XSMail SMTPConnectionHelper.cpp(00042) : Unexpected reply: 550 5.2.1 Mailbox cannot be accessed [mailserver.OUTLOOK.COM]

[129574]{29574}[-1/-1] [timestamp] e XSMail SMTPAuthentication.cpp(00150) : Login authentication failed!

[129574]{29574}[-1/-1] [timestamp]1 e JavaScript SMTPConnection.cpp(00115) : Couldn't send mail: exception 1: no.2530014 (XSEngine/Connectivity/Smtp/SMTPConnection.cpp:313)

error authentication failed

 SAP HANA 1.0

SAP HANA 2.0

SAP HANA database, XS Classic, XS Mail, STMP, Outbound, email, common crypto, office365 , KBA , HAN-AS-XS , SAP HANA Extended Application Services , HAN-DB-SEC , SAP HANA Security & User Management , Problem