SMTP Configuration error: SMTP: Cannot use AUTH LOGIN. This may be caused by authentication not being enabled on the MTA

SOLVED

When trying to send email via SMTP relay I get the following error:

Apr 6 2020 14:06:28.720                315464  342676  5              SMTP: Could not send message. This may be due to AUTH not being supported by the MTA, no supported authentication methods being available, or an incorrect username / password. Retrying using AUTH LOGIN. Message: EIdSASLNotSupported: Doesn't support AUTH or the specified SASL handlers!!

Apr 6 2020 14:06:28.764                315464  342676  5              SMTP: Cannot use AUTH LOGIN. This may be caused by authentication not being enabled on the MTA, or an incorrect username / password. Retrying without authentication. Message: EIdSMTPReplyError: Unrecognized authentication type

 

Apr 6 2020 14:06:28.846                315464  342676  5              SMTP: Retry successful. Mail sent without authentication.

If I try to use straight forward Office 365 with Authentication it fails with a socket error. However, I have tested this on another VM with the same version and same office 365 details and it works fine.