Have you configured any mail templates?
if so, Template From mail address and your configuration from address and username should be same
From the settings visible in your screenshot, it is correct https://support.microsoft.com/en-us/office/pop-imap-and-smtp-settings-8361e398-8af4-4e97-b147-6c6c4ac95353
I bet a firewall rule is preventing you to connect from the Mendix server to the SMTP Server. If you run the app locally, it could be the corporate firewall. I would suggest “just to publish” it like this and see if from the Mendix Cloud you do get access.
Go Make IT.
I ran into the same problem.
The solution is to disable the default security measures, that do not allow the connection to the SMTP server using outdated methods.
In the Azure portal
The default security measures have been disabled to enable sending e-mail via Mendix:
I do not recommend to disable this because you will have to manually enable the ones you want to keep (like enforcing 2FA for Admins).
You also have to enable the sending via authorized SMTP in the account you want to use:
I think a build-in SMTP server in every Mendix environment that will send using the url name (firstname.lastname@example.org) would be a great addition. You should be able to change it to your own smtp server. But for Microsoft this requires complex configuring in account settings that are not available for users in bigger companies.