Per Microsoft’s communications on this, “SMTP AUTH will still be available when Basic authentication is permanently disabled”, so you can still use Basic Auth for SMTP authentication in your Auth0 configuration and no additional action should be necessary. If you are interested in Auth0 supporting “Modern Auth” for Office 365, please submit a feature request.
Thanks for your reply. This is correct, as they have postponed SMTP and made it out-of-scope however, it is kind of confusing on what they have posted:
On September 1, 2022, we announced there will be one final opportunity to postpone this change. Tenants will be allowed to re-enable a protocol once between October 1, 2022 and December 31, 2022. Any protocol exceptions or re-enabled protocols will be turned off early in January 2023, with no possibility of further use.
So my thinking is “Any protocol exceptions or re-enabled protocols” will include SMTP next year. In any case, I have submitted a feature request about it: Auth0 supporting “Modern Auth” for Office 365