Background
In September 2021, Microsoft announced that effective October 1, 2022, they will begin disabling Basic authentication for Outlook, EWS, RPS, POP, IMAP, and EAS protocols in Exchange Online. SMTP Auth will also be disabled if it is not already being used by the customer .
SMTP AUTH will still be available when Basic authentication is permanently disabled on October 1, 2022. The reason SMTP will still be available is that many multi-function devices such as printers and scanners can't be updated to use modern authentication.
Reference: https://docs.microsoft.com/en-us/exchange/clients-and-mobile-in-exchange-online/deprecation-of-basic-authentication-exchange-online
Impact on the Distribution Service
No impact on the customers who have already been using email-related functionalities of the Distribution Service before Oct1, 2022
Has impact on the new customers or the registered customers who want to use it after Oct1, 2022, like Email subscription/Email notification will be affected.
Note: The impact happen in the delivery stage and the direct impact is that the user can't not receive any email if the customer use the Microsoft email client.
Workaround
Disable smart host when configuring email in the Device Editor, by unchecking the ‘Always use Smart Host’ option.
Reference: https://community.strategy.com/article/KB31568-How-to-configure-Smart-Host-for-use-with-MicroStrategy?language=en_US
Note: