Sadly you’re right. Microsoft has brainwashed many IT departments into forcing oauth on everything, no app specific passwords, no regular passwords, nothing else. Thankfully they do support this on imap and smtp, but you have to have something that can handle it. I use a modified version of isync with the sasl plugin to fetch mail, and a python smtp sender that supports the oauth flow along with a set of scripts for generating a new refresh token every few months. It’s a heck of a lot of stuff to maintain, but at least it works. If anyone’s interested I could provide links or upload the modified versions to fix o365 quirks.