Enable the backup service account to Set app password

To configure, the first step is to enable the backup service account to Set app password.

Follow these steps:

1. Sign into Microsoft Office 365 using credentials of an administrator account and click the Admin icon.
2. 
2. From the Microsoft 365 admin center screen, navigate to Users > Active users.
3. 
3. From the Active users screen, click the Multi-factor authentication option.
4. Important! If you do not see the (...) option, then you are not a global admin for your subscription.
5. 
6. You are led to the Setup Azure multi-factor authentication.
7. Steps 4 and 5 only need to be set once. Then, skip to step 6
8. 
4. From the multi-factor authentication screen, click service settings.
5. From app passwords, select the checkbox of Allow users to create app passwords to sign in to non-browser apps.
6. 
7. You can then use client Office apps after you create a new password.
6. Click save and close the window.
7. You return to the users screen.
7. From the users screen, perform the following steps:
1. Select the check box for the users to enable MFA.
2. 
3. The right pane displays name of the user and under quick steps, you can view Enable and Manage user settings.
2. Click Enable.
3. 
4. A dialog box appears.
3. From the dialog box, click enable multi-factor auth.
4. 
5. 
8. The backup service account to Set app password is enabled.