530 5.7.57 SMTP; Client was not authenticated to send anonymous mail during MAIL FROM

Hi, I'm try to setup smtp to send a emailout from a application but I keep getting this error "530 5.7.57 SMTP; Client was not authenticated to send anonymous mail during MAIL FROM"

We dont have exchange on-promise only exchange online.

The account i'm using does does existed in office365 and it does have E1 lincese.

Also account does have"Manage email apps" -> Authenticated SMTP -> ticked

How do I setup this account to send email through "smtp.office365.com on tcp port 587"

Error.

ERROR: Error on queue [queue.MailerTestQueue]: Mail processor cannot send mail. 530 5.7.57 SMTP; Client was not authenticated to send anonymous mail during MAIL FROM [LO3P265CA0006.GBRP265.PROD.OUTLOOK.COM] : 530 5.7.57 SMTP; Client was not authenticated to send anonymous mail during MAIL FROM [LO3P265CA0006.GBRP265.PROD.OUTLOOK.COM] 2020-07-13 12:11:30,448 Duration: 5070 ms Result: Error

I try to test it with powershell script

$cred = Get-Credential -UserName account@Domain.co.uk -Message "Enater Password for account"

$mailParams = @{
    smtpServer         = "smtp.office365.com"
    Port               = '587'
    UseSSL=$true
    Credential = $cred
    From = "account@domain.co.uk"
    To="toaccount@domain.co.uk"
    Subject = "SMTP Relay"
    Body="Message SMTP Relay"
    DeliveryNotificationOption='onFailure','OnSuccess'
}

Send-MailMessage @mailParams

But i got following error message

Send-MailMessage : The SMTP server requires a secure connection or the client was not authenticated. The server response was: 5.7.57 SMTP; 
Client was not authenticated to send anonymous mail during MAIL FROM [LO2P265CA0050.GBRP265.PROD.OUTLOOK.COM]
At line:15 char:1+ Send-MailMessage @mailParams+ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~+ CategoryInfo          : InvalidOperation: (System.Net.Mail.SmtpClient:SmtpClient) [Send-MailMessage], SmtpException+ FullyQualifiedErrorId : SmtpException,Microsoft.PowerShell.Commands.SendMailMessage