M Anandan since Microsoft is disabling basic authentication for Office 365. I do suggest looking at reports on anyone using basic authentication in Office 365 and prepare them by updating and using OWA, Outlook for IOS, etc. You can keep on premise with single factor however, if the mailbox is in the cloud the user will need to use modern authentication.
Step1: Go to Azure Sign-in report in the Microsoft Azure portal. The sign-in report shows sign-in activity in the tenant, date, time, user IP address, login location.
Step2: Add the ‘Client app’ column to the report (Client app is not displayed by default). The ‘Client app’ column will show you the protocols used by the user to connect Office 365.
Step3: To view O365 basic authentication report, click ‘Add filters’ and then select ‘Client app’. Apply the changes. Now select the ‘Client app’ filter to choose legacy authentications like Exchange Active sync, Exchange Online PowerShell, IMAP4, POP3, etc.
After applying a filter, you can view connections/sign-ins that meet your criteria – I.e., Users who use basic authentication connection.
Note: To generate all basic authentication connections, select everything in the ‘Client app’ except Browser and Mobile Apps & Desktop Clients.
To get details pane, you can click any of the line. The details pane has contained basic info, location, device info, authentication details, conditional access, etc.
The basic authentication report can be downloaded as a CSV or JSON file. You can use this Exchange Online basic authentication report to find users who use basic authentication to connect Exchange Online and take the necessary steps to adopt modern authentication.
Deprecation of Basic Authentication - Office 365 Basic Authentication Report (o365reports.com)