Some emails not sending if using wp-config.php

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Hi,
recently reset password email etc. started to produce “SMTP Error: Could not authenticate” messages. I was using wp-config.php file as instructed on plugin settings page. Test email worked fine. If I set “WPMS_ON” to false in wp-config.php and set password manually to plugin settings page, reset password email will be sent succesfully.

Don’t know is it just me or some bug but wanted to inform about it. WordPress and plugins are latest versions. I’m using smtp.office365.com.