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SMTP Authentication required

I'm not understanding why I'm getting 530 5.7.0 Authentication required errors when Sophos UTM sends quarantine reports. No other email notifications from the UTM trigger this error.

I have the UTM set to use an external SMTP server under Management->Notifications. It is set with credentials for a real account on the SMTP server. This external server is actually the SMTP server that the UTM is protecting and it is of course, local and behind the UTM.

Since I have specified using an external SMTP with authentication, then why isn't the UTM authenticating when sending quarantine reports?

Log entry from the UTM:
2024:04:30-07:00:00 gateway exim-out[26950]: 2024-04-30 07:00:00 1s1lDM-0000000070f-0QDO ** info@example.com P=<gateway@example.com> R=static_route_hostlist T=static_smtp H=192.168.11.5 [192.168.11.5]:25 X=TLS1.2:ECDHE-RSA-AES256-GCM-SHA384:256 CV=no: SMTP error from remote mail server after RCPT TO:<info@example.com>: 530 5.7.0 Authentication required
Log entry from the email server:
Tue 2024-04-30 06:59:58.911: <-- MAIL FROM:<gateway@example.com> SIZE=62914
Tue 2024-04-30 06:59:58.914: --> 250 2.1.0 Sender OK
Tue 2024-04-30 06:59:58.914: <-- RCPT TO:<info@example.com>
Tue 2024-04-30 06:59:58.931: --> 530 5.7.0 Authentication required
Tue 2024-04-30 06:59:58.931: <-- DATA
Tue 2024-04-30 06:59:58.931: --> 503 5.5.1 Bad command sequence
Tue 2024-04-30 06:59:58.931: <-- QUIT
Tue 2024-04-30 06:59:58.931: --> 221 2.0.0 See ya in cyberspace


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