General help

I'm having problem with smtp config, after upgrade to version 3.8.1  to 3.9.3+ the same configuration that used to work in previous version is not working anymore did few testing using gmail and yahoo but almost the same thing.

SMTP: 

smtp.office365.com:587

my own email and password are set correctly also enabled in outlook.

2021-01-14 14:51:19	Connection: opening to smtp.office365.com:587, timeout=300, options=array()
2021-01-14 14:51:19	Connection: opened
2021-01-14 14:51:19	SERVER -> CLIENT: 220 AM0PR03CA0067.outlook.office365.com Microsoft ESMTP MAIL Service ready at Thu, 14 Jan 2021 14:51:18 +0000
2021-01-14 14:51:19	CLIENT -> SERVER: EHLO edu.vamed.com
2021-01-14 14:51:19	SERVER -> CLIENT: 250-AM0PR03CA0067.outlook.office365.com Hello
                   	                  250-SIZE 157286400
                   	                  250-PIPELINING
                   	                  250-DSN
                   	                  250-ENHANCEDSTATUSCODES
                   	                  250-STARTTLS
                   	                  250-8BITMIME
                   	                  250-BINARYMIME
                   	                  250-CHUNKING
                   	                  250 SMTPUTF8
2021-01-14 14:51:19	CLIENT -> SERVER: STARTTLS
2021-01-14 14:51:19	SERVER -> CLIENT: 220 2.0.0 SMTP server ready
2021-01-14 14:51:19	CLIENT -> SERVER: EHLO edu.vamed.com
2021-01-14 14:51:19	SERVER -> CLIENT: 250-AM0PR03CA0067.outlook.office365.com Hello
                   	                  250-SIZE 157286400
                   	                  250-PIPELINING
                   	                  250-DSN
                   	                  250-ENHANCEDSTATUSCODES
                   	                  250-AUTH LOGIN XOAUTH2
                   	                  250-8BITMIME
                   	                  250-BINARYMIME
                   	                  250-CHUNKING
                   	                  250 SMTPUTF8
2021-01-14 14:51:19	CLIENT -> SERVER: AUTH LOGIN
2021-01-14 14:51:19	SERVER -> CLIENT: 334 VXNlcm5hbWU6
2021-01-14 14:51:19	CLIENT -> SERVER: [credentials hidden]
2021-01-14 14:51:19	SERVER -> CLIENT: 334 UGFzc3dvcmQ6
2021-01-14 14:51:19	CLIENT -> SERVER: [credentials hidden]
2021-01-14 14:51:25	SERVER -> CLIENT: 535 5.7.3 Authentication unsuccessful [AM0PR03CA0067.eurprd03.prod.outlook.com]
2021-01-14 14:51:25	SMTP ERROR: Password command failed: 535 5.7.3 Authentication unsuccessful [AM0PR03CA0067.eurprd03.prod.outlook.com]
2021-01-14 14:51:25	SMTP Error: Could not authenticate.
2021-01-14 14:51:25	CLIENT -> SERVER: QUIT
2021-01-14 14:51:25	SERVER -> CLIENT: 221 2.0.0 Service closing transmission channel
2021-01-14 14:51:25	Connection: closed
2021-01-14 14:51:25	SMTP connect() failed. https://github.com/PHPMailer/PHPMailer/wiki/Troubleshooting

• line 498 of /lib/setuplib.php: moodle_exception thrown
• line 142 of /auth/email/auth.php: call to print_error()
• line 99 of /auth/email/auth.php: call to auth_plugin_email->user_signup_with_confirmation()
• line 92 of /login/signup.php: call to auth_plugin_email->user_signup()