24 January 2024: Oauth2 is functional again in Thunderbird for Microsoft email addresses.
Right-click your email and Settings. Go to Server Settings. Change for OAuth2.
If you do not allow cookies in Thunderbird, go here to accept them: Tools - Settings - Privacy and check the box: Accept cookies. You will then have to enter your password.
If you cannot receive your messages with your outlook/Live/Hotmail address with a large empty box in front of you, you will have to change an option in the settings.
Right-click your email and Settings. Go to Server Settings. Change the OAuth2 authentication method to "Normal password.".
Check if you have multiple SMTP outgoing server, that the good is by default per address at the same time because it seems changed at least in my case.