Exchange hosted and azure AD question

Jet-Fighter7700

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Hi Guys,

struggling with an issue here
so time to ask the experts that know more than me,

exchange online (azure instance) with hosted office 365
trying to setup multi-factor authentication, with it going to SMS for the users.

set it up, works but only on browser based sessions,
cant login using app passwords to outlook 2016/2019 using microsoft 365 apps for business

if I turn it off everything works perfectly, and can login to emails and receive emails quite successfully.

sure there is a setting or a license that I need, any help would be appreciated.
 
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