Here’s how you can make sure Users can create their App Passwords in Office 365 Security Info Page.
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Allow users to create App Passwords in Office 365 | Multi-factor Authentication
If you are an Admin User who wish to create App Passwords so that you can use them in your code/web applications so that you don’t have to store credentials in your application? Example: Azure Function you are developing shouldn’t store the password of the User.
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