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Sending email does not work with Office365 SMTP

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During November my Thunderbird client 128.5.1esr (and the previous release too) stop sending email with my employer Office365 account. I can download email (IMAP) but not send email. I get the following window after a few seconds (see screenshot below):

          Login to account "Microsoft 365" failed
          Login to server smtp.office365.com with username XXXXX failed.
          [ Enter New Password ]               [ Cancel ]. [ Retry ]

The password is correct but if I try to Enter a New Password, nothing happens. Retry displays the same window again. I see that many people had this problem in the past and I have tried all possible solutions to no avail (configuration is correct, deleting and creating the account again, etc.).

During November my Thunderbird client 128.5.1esr (and the previous release too) stop sending email with my employer Office365 account. I can download email (IMAP) but not send email. I get the following window after a few seconds (see screenshot below): Login to account "Microsoft 365" failed Login to server smtp.office365.com with username XXXXX failed. [ Enter New Password ] [ Cancel ]. [ Retry ] The password is correct but if I try to Enter a New Password, nothing happens. Retry displays the same window again. I see that many people had this problem in the past and I have tried all possible solutions to no avail (configuration is correct, deleting and creating the account again, etc.).
Attached screenshots

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