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Microsoft 365 Business Basic and android native email support
I have a few hundred users with different tenents set up with 365 business basic accounts. I never had any issue adding their email account using the native android mail app - selecting exchange ac...
Likely related to basic authentication being switched off. The native Android client doesn't support Modern auth afaik, so try the Outlook app. There can be a number of other reasons too, such as blocking ActiveSync, check the audit logs for more info.