At our orgs that use o365, we first audit for basic auth services via the Azure AD sign in logs. Then once we're sure that devices/users aren't using basic auth we add the o365 accounts to a conditional access policy blocking access to basic auth services.
We also then modify the default mail box settings for the tenant to have imap/smtp disabled by default. This blog talks about the process with using Powershell
https://gcits.com/knowledge-base/disable-pop-imap-mailboxes-office-365/
If there are any accounts that /need/ imap/pop like scanners and such we exclude them from the conditional access policy disabling basic auth, and ensure that imap/pop are enabled on their mailbox.
Bare in mind to use Conditional access you need Azure AD p1 and above for all users you wish to apply sign in policies to, if you can't afford that enforcing MFA and disabling imap/pop is a good start.
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