Outbound email settings is not working for office365

SuiteCRM-7.11.4 - Outbound email settings is not working for office 365. i am not able to add users outbound settings.
Could you please share any solution for this issue.

I am having the same issues.

SMTP ERROR: Password command failed: 535 5.7.3 Authentication unsuccessful [MN2PR19CA0035.namprd19.prod.outlook.com]

I updated: (from github repos)

PHPMailer.php
SMTP.php
SugarPHPMailer.php

Still no go.

Some Error log from another O365 Setup which did not connect.

3: Connection: opening to smtp.office365.com:587, timeout=300, options=array()
3: Connection: opened
2: SERVER -> CLIENT: 220 BY5PR13CA0010.outlook.office365.com Microsoft ESMTP MAIL Service ready at Fri, 1 Nov 2019 15:41:35 +0000

1: CLIENT -> SERVER: EHLO crm.mysite.com

2: SERVER -> CLIENT: 250-BY5PR13CA0010.outlook.office365.com Hello [66.147.244.235]
250-SIZE 157286400
250-PIPELINING
250-DSN
250-ENHANCEDSTATUSCODES
250-STARTTLS
250-8BITMIME
250-BINARYMIME
250-CHUNKING
250 SMTPUTF8

1: CLIENT -> SERVER: STARTTLS

2: SERVER -> CLIENT: 220 2.0.0 SMTP server ready

1: CLIENT -> SERVER: EHLO crm.mysite.com

2: SERVER -> CLIENT: 250-BY5PR13CA0010.outlook.office365.com Hello [66.147.244.235]
250-SIZE 157286400
250-PIPELINING
250-DSN
250-ENHANCEDSTATUSCODES
250-AUTH LOGIN XOAUTH2
250-8BITMIME
250-BINARYMIME
250-CHUNKING
250 SMTPUTF8

1: CLIENT -> SERVER: AUTH LOGIN

2: SERVER -> CLIENT: 334 VXNlcm5hbWU6

1: CLIENT -> SERVER: —obfuscated—
2: SERVER -> CLIENT: 334 UGFzc3dvcmQ6

1: CLIENT -> SERVER: —obfuscated—
2: SERVER -> CLIENT: 535 5.7.3 Authentication unsuccessful [BY5PR13CA0010.namprd13.prod.outlook.com]

1: SMTP ERROR: Password command failed: 535 5.7.3 Authentication unsuccessful [BY5PR13CA0010.namprd13.prod.outlook.com]

3: SMTP Error: Could not authenticate.
1: CLIENT -> SERVER: QUIT

2: SERVER -> CLIENT: 221 2.0.0 Service closing transmission channel

3: Connection: closed
3: SMTP Error: Could not authenticate.