mgolda While I appreciate your reply, you don't address the issues. It's rather frustrating that this happens so often while speaking with Microsoft.
Azure Communication Services doesn't support basic authentication - why did you even mention this to me? I told you Basic Auth is a requirement for many apps still. Azure Communication uses modern authentication only and it also requires extensive setup and programming. We have 3rd party GUI apps that are not developed by us, how are we supposed to programmatically configure those? Why did you even bring this solution up?
Your other comments regarding HVE and the existing documentation also didn't address anything I mentioned. I already read this and determined it will be nonfunctional for us since we have completely disabled Basic SMTP (as per Microsoft's recommendations BTW...).
The answer to this problem is for Microsoft to create a separate BASIC AUTH service that is not connected to Exchange Online and is easy to implement without having to program any code. You provided HVE, and this solves the latter problem, but it won't work for us because of the basic auth issue I mentioned. In other words, you need to create a service like SendGrid or MailChimp to compete with their products. That way, we don't have to purchase 3rd party solutions.
This is another example of Microsoft creating a half-baked solution that doesn't compete well with 3rd party solutions. /end rant.