Like Harsh said, check if SMTP authentication is enabled for this account.
Office 365 or Microsoft 365, SMTP authentication is enabled by default for all users in the organization. Users can use their Office 365 credentials to authenticate and send emails via SMTP.
On the other hand, for free consumer email accounts like Outlook.com (Hotmail), SMTP authentication may need to be explicitly enabled in the account settings. This is to ensure that only authorized users can send emails using their accounts.
Second I don’t think it’s a Make.com issue. You need to follow all the steps from the Microsoft documentation to see if you have done correctly all the steps for SMTP/Imap Oauth Connection.