If you discover that your Microsoft 365 / Exchange mail account password is no longer working in Thunderbird, please take note of this:
Microsoft is force rolling out deprecation of normal password authentication, so you'll need to switch to "Authentication Method: OAuth2" in the account's Server Settings.
This should resolve your issue.
You can read more about this change here: https://techcommunity.microsoft.com/t5/exchange-team-blog/basic-authentication-and-exchange-online-september-2021-update/ba-p/2772210
Basic Authentication and Exchange Online – September 2021 Update
Update: The full timeline for retirement of Basic Authentication in Exchange Online is now published in Basic Authentication Deprecation in Exchange Online – September 2022 Update. In February 2021, we announced some changes to our plan for turning off Basic Authentication in Exchange Online. In sum...