Issue: After adding an email account to Thunderbird, inbound mail works fine, but outbound mail is failing with an authentication error.

This may take place if you use a "smart host" for email or a 3rd party outbound mail service.

This is due to the fact that Mozilla Thunderbird assumes that the account credentials, both of which may be the email address use's the "SAME" password.

This can be confirmed by going to the Preferences / Security / Passwords in which the most recent build of Thunderbird as of 03/2018 will allow you to click/focus on the password (after clicking, show password) and allow you to update the password with the "correct" outbound mail password. After updating and saving, you need to close Thunderbird and re-open

In Thunderbird, go to Preferences. Then click the Security tab. From there, select the Passwords tab. You can then click the Saved Passwords button to get a list of the passwords Thunderbird has saved. From there, you can show the passwords and delete the passwords. If you delete one, it will ask you for it again when you try and use it.

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