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I don't think it was MS that instituted the new Auth Code. You have an SBCGlobal account which is affected by AT&T / Yahoo who made the change. You have to go to the AT&T / Yahoo mail site and get your authorization code. You use that to log into mail instead of your old account.

oAuth (Open Authentication) is an Internet standard for logging in. It needs a change in email software like Outlook as well as the mail host. Many mail hosts have switched to oAuth, the latest is AT&T. Past Outlooks 2016, 2013, 2010 etc. don’t know about Open Authentication. The workaround is to use what ATT calls a ‘Secure Mail Key’ (it goes under many names like App Password -- whatever it’s called, it’s the same thing.).

Create a secure mail key
Learn about secure mail keys and why you’ll need one to access your AT&T email from a desktop program or email app without Open Authentication (OAuth).

Do you use a desktop program or a mobile app to access and manage your AT&T email? If so, we suggest you use one with Open Authentication (OAuth) technology, which encrypts your username and password. Learn about OAuth and find out if your app uses OAuth.

If your email program or app doesn’t have OAuth technology, it will only be able to access your AT&T email program or app using a 16-character secure mail key. Be sure to use myAT&T to create a secure mail key for each of your AT&T email addresses and subaccounts, so you can continue to: Access your AT&T email with your favorite email apps Synchronize other account info, such as your calendar and contacts, to your email app