When setting up SMTP Auth, ensure that the target mailbox is configured for smtp relay. You can enable SMTP authentication for the target mailbox by
User --> Mail --> Manage email Apps --> check Authenticated SMTP
Then open an elevated powershell and run the script below to test
$msolcred = get-credential
Send-MailMessage –From SenderEmail –To SeceiverEmail –Subject “Email via PS” –Body “I am Testing the SMTP Relay Service from PowerShell” -SmtpServer smtp.office365.com -Credential $msolcred -UseSsl -Port 25
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