Failed to authenticate on SMTP server with username in smtp.office365.com

In my Laravel-5.8 project I am trying to send email/notification using office365

config/mail.php

<?php

  return [

    'driver' => env('MAIL_DRIVER', 'smtp'),

    'host' => env('MAIL_HOST', 'smtp.office365.com'),

    'port' => env('MAIL_PORT', 587),

    'from' => [

        'address' => env('MAIL_FROM_ADDRESS', '[email protected]'),
        'name' => env('MAIL_FROM_NAME', 'JJJ'),
    ],


    'encryption' => env('MAIL_ENCRYPTION', 'tls'),

    'username' => env('MAIL_USERNAME','[email protected]'),

    'password' => env('MAIL_PASSWORD','testing'),


    'sendmail' => '/usr/sbin/sendmail -bs',

    'markdown' => [
        'theme' => 'default',

        'paths' => [
            resource_path('views/vendor/mail'),
        ],
    ],

    'log_channel' => env('MAIL_LOG_CHANNEL'),

];

But I got this error:

#message: “””
Failed to authenticate on SMTP server with username “[email protected]” using 2 possible authenticators. Authenticator LOGIN returned Expected response code 235 but got code “535”, with message “535 5.7.3 Authentication unsuccessful [LO2P265CA0268.GBRP265.PROD.OUTLOOK.COM] ◀
“. Authenticator XOAUTH2 returned Expected response code 235 but got code “535”, with message “535 5.7.3 Authentication unsuccessful [LO2P265CA0268.GBRP265.PROD.OUTLOOK.COM] ◀
“.
“””

How do I resolve it?

Thanks