Office365 SMTP AUTH XOAUTH2 Fails with “535 5.7.3 Authentication unsuccessful”

If you successfully minted an OAuth2 access token for your Azure Entra Id App, but then it fails when attempting to use it in the SMTP protocol for sending email with the error:

AUTH XOAUTH2 user=xxx auth=Bearer **********************
535 5.7.3 Authentication unsuccessful [BN9PXXXA0336.namprd03.prod.outlook.com 2024-04-16T12:11:26.548Z 08DC9999186DF999]

Check your Entra Id App Registration to make sure you have the following App Permissions: