Failed to authenticate on SMTP server with username “XYZ” using 2 possible authenticators

@Joseph - additional hint, sometimes passwords with some special chars create problems for some smtp servers, so try a password without special chars and see if that does the trick.
 
Try to see if you can reach the SMTP server via TELNET. If that does not work, you know it is not related to MW and you can look further to see where it comes from. Maybe your hosting provider has closed the connecting port?
 
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