Hmm, I literally just double-checked before posting (with the beta version, too), and it still says it needs a plugin? Maybe I need to look a bit closer.
I definitely used Thunderbird for an O365 account that required 2FA and so had to use OAuth, back to.... 2021 at least, I think. Though I think you might have had to know to change the auth method to OAuth to get it working, at least at the time.
If you've constantly upgraded over the years, try creating a new account or even reseting your profile. Perhaps there are/were some 'stale' settings that are messing things up.
