What is difference between the basic authentication which being ended and modern auth without MFA https://learn.microsoft.com/en-us/powershell/exchange/connect-to-exchange-online-powershell?view=exchange-ps#connect-to-exchange-online-powershell-without-using-mfa.
Exchange Online: What is difference between Basic Authentication and Modern Authentication without MFA
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While the Powershell examples like the one above look quite similar to the original basic authentication examples, Exchange Online's "modern authentication" uses a completely different mechanism under the hood. Where the old mechanism is an exchange of credentials using Windows-based Active Directory protocols, the new mechanism uses the OAuth Authorisation Code Grant mechanism. This is the same as the mechanism you use when signing into a third party website with your Google or Facebook credentials. It allows a website or application to trust you based on a third party's authentication of you (known as federation of authentication), without ever knowing your logon details, and is designed to work securely over the web.
Why are Microsoft making this change?
There are several reasons why Microsoft is likely making this change:
OAuth Authorisation Code Grant
The flow looks like this. Much of this is necessary 1) because the application involved is delegating the authentication and 2) to keep details as secure as possble when passing over the web. You can see that Powershell is hiding much of the complexity. Image Credit: C# Corner