Managing personal Outlook.com account settings, security, and privacy
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You are probably not doing anything wrong with the app password. The issue is that the connection shown in the log is using the IMAP LOGIN command, which is Basic Authentication. Outlook.com now requires OAuth2/Modern Authentication for IMAP, so neither your normal password nor an app password will authenticate through that method
The test is also using port 143, whereas the documented Outlook.com IMAP settings are:
Server: outlook.office365.com
Port: 993
Encryption: SSL/TLS
Authentication: OAuth2/Modern Authentication
Please check with Fasthosts or Audriga whether their migration option supports OAuth for a personal Outlook.com account You should normally be redirected to a Microsoft sign-in page to authorize mailbox access. If their tool only provides username and password fields, it is likely using an authentication method Outlook.com no longer accepts.
Hope this helps