Microsoft will no longer support Basic Authentication starting from the second half of 2021. For more information, please see this Microsoft announcement.
Does Active Roles and Active Roles Sync service support Modern Authentication based on OAuth 2.0?.
Modern Authentication for exchange online properties is included as a preview feature in Active Roles v7.4.3. Modern Authentication is fully supported in both Active Roles as well as Active Roles Sync service. However, this preview follows Microsoft’s roadmap in not enforcing customers to switch over from Basic Auth to Modern Auth until it is deprecated in October.
The preview enables customers who have already switched over to manually chose modern auth without causing an issue for existing customers who are on Basic Auth and haven’t switched over.
This allows customers who have Basic Auth disabled on the Tenant side to function.
NOTE: Even the most recent version of the Exchange Online v2 cmdlets still have a hard requirement that Basic Auth must still be enabled on the client (i.e. the Active Roles Synchronization Service host). There is no workaround until Microsoft releases an updated PowerShell module that fully supports Modern Auth.
With the release of Active Roles 7.4.4, we will be making this a permanent switch to Modern Auth as it will fall inline with MS’s deprecating support for Basic Auth.