How to bypass Multi-Factor Authentication or Email Authentication issue for Office 365 / Microsoft 365 Emails

Problem Statement:

When MFA has introduced a couple of months ago in Office 365 / Microsoft 365 or made mandatory for a certain set of accounts, Microsoft Dynamics 365 NAV / Business Central had issues sending email through SMTP Email.

Pre-requisites:

• Office 365 / Microsoft 365 Account
• Enabled Outlook
• Microsoft Dynamics 365 Business Central 

Demonstration:

1. Creating App Password for Multi-Factor Authentication based Accounts:

After you have set up MFA, Microsoft 365 allows you to create a One-Time password to login to the corresponding apps. This password cannot be viewed again so copy it somewhere. Follow the process below.

Office 365 > My Account

Settings & Privacy > Privacy > View Page Link

Security & Privacy > Additional security verification > Create and manage app password

Create Password

Copy Password

2. Enabling Authenticated SMTP in Office 365 / Microsoft 365 Admin Center:

After you have a password created, you need to check if you Mail Apps have the access to your email.

Follow the process below to enable.

Open Users in Office 365 > Mails > Manage email apps

Enable Authenticated SMTP

After this, you just have to use your  Email and App password created in Step #1 in SMTP Setup and run the Test Email.

SMTP Setup in Business Central

Conclusion:

That's all and I'm happy that I figured this out once it for all.
I hope this helps!!

Thanks. Cheers!!