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Office 365 – Could not authenticate your SMTP account

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I am using Contact Form 7 with WP Mail SMTP (Other SMTP mailer setting) together with Office 365 (which uses a shared mailbox to send the form enquiries to another address, all under the same website domain). I have this set-up across multiple websites and all seemed to be working fine (WP Mail SMTP version 1.4.2) until updating. I am now getting the following error. If Office 365 has Two Factor Authentication turned on, could that be the problem? If so is there a way around it? Thanks

Versions:
WordPress: 5.4.1
WordPress MS: No
PHP: 7.1.33
WP Mail SMTP: 2.0.1

Params:
Mailer: smtp
Constants: No
ErrorInfo: SMTP Error: Could not authenticate.
Host: smtp.office365.com
Port: 587
SMTPSecure: tls
SMTPAutoTLS: bool(true)
SMTPAuth: bool(true)

Server:
OpenSSL: OpenSSL 1.1.1g 21 Apr 2020
SMTP Debug:
2020-05-10 21:42:41 Connection: opening to smtp.office365.com:587, timeout=300, options=array ()

2020-05-10 21:42:41 Connection: opened

2020-05-10 21:42:41 SERVER -> CLIENT: 220 LO2P265CA0255.outlook.office365.com Microsoft ESMTP MAIL Service ready at Sun, 10 May 2020 21:42:41 +0000

2020-05-10 21:42:41 CLIENT -> SERVER: EHLO domainname.co.uk

2020-05-10 21:42:41 SERVER -> CLIENT: 250-LO2P265CA0255.outlook.office365.com Hello [31.170.121.199]250-SIZE 157286400250-PIPELINING250-DSN250-ENHANCEDSTATUSCODES250-STARTTLS250-8BITMIME250-BINARYMIME250-CHUNKING250 SMTPUTF8

2020-05-10 21:42:41 CLIENT -> SERVER: STARTTLS

2020-05-10 21:42:41 SERVER -> CLIENT: 220 2.0.0 SMTP server ready

2020-05-10 21:42:41 CLIENT -> SERVER: EHLO domainname.co.uk

2020-05-10 21:42:41 SERVER -> CLIENT: 250-LO2P265CA0255.outlook.office365.com Hello [31.170.121.199]250-SIZE 157286400250-PIPELINING250-DSN250-ENHANCEDSTATUSCODES250-AUTH LOGIN XOAUTH2250-8BITMIME250-BINARYMIME250-CHUNKING250 SMTPUTF8

2020-05-10 21:42:41 CLIENT -> SERVER: AUTH LOGIN

2020-05-10 21:42:41 SERVER -> CLIENT: 334 VXNlcm5hbWU6

2020-05-10 21:42:41 CLIENT -> SERVER: YWNjb3VudHNAc2V0d29ya3MuY28udWs=

2020-05-10 21:42:41 SERVER -> CLIENT: 334 UGFzc3dvcmQ6

2020-05-10 21:42:41 CLIENT -> SERVER: SmVzc2ljYTE5NzMlJSU=

2020-05-10 21:42:47 SERVER -> CLIENT: 535 5.7.3 Authentication unsuccessful [LO2P265CA0255.GBRP265.PROD.OUTLOOK.COM]

2020-05-10 21:42:47 SMTP ERROR: Password command failed: 535 5.7.3 Authentication unsuccessful [LO2P265CA0255.GBRP265.PROD.OUTLOOK.COM]

SMTP Error: Could not authenticate.

2020-05-10 21:42:47 CLIENT -> SERVER: QUIT

2020-05-10 21:42:47 SERVER -> CLIENT: 221 2.0.0 Service closing transmission channel

2020-05-10 21:42:47 Connection: closed

SMTP Error: Could not authenticate.


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