Unable to use exchange online plan 1 for "From Address"

Hi, I just registered for an Exchange Online (Plan 1) to host my emails for my work domain. Sending email to and fro works fine on the outlook.office.com interface. I'm having some issues trying to configure the smtp server on zoho desk.

From Address: myemail@mydomain.com

Use my SMTP

SMTP User Name: myemail@mydomain.com

SMTP Password: mypassword (which works when I try to login to outlook on the web)

Connection Type: TLS

Server Name: smtp.office365.com

Port: 587

I get this message when I try to save it. "Error while processing the request! Outgoing Authentication Failure for myemail@mydomain.com"

So far I have tried:

1. MS365 admin center > Active users > My user > Mail > Manage email apps > Authenticated SMTP (Checked)

2. MS365 admin center > Active users > My user > Mail > Manage email apps > Pop (Checked)

3. Azure Active Directory > Admin center > users > My user > Sign-ins Activity

it says that "Access has been blocked by Conditional Access policies". But I didn't configure any setting, and I can't edit the policy nor add a new policy.

I'm thinking that there has got to be an easier way to "enable less secure apps" like google apps but I have no idea how this is done. Can anyone here help me?

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