Quick reference:
Settings -> Email
Introduction
SSO in Workspace 365 is configured via oAuth2. To Exchange Online/Microsoft 365 we connect via oAuth2. In this article we will explain how to configure your email using Exchange Online.
Configuration
Make sure the Workspace SSO App registration in Microsoft Entra ID (previously called Azure AD) has the correct API permissions assigned for Exchange Online.
Then, go to the Workspace admin settings.
Go to Integrations and select Exchange settings.
Check the checkbox Enable Exchange.
Set the Exchange server type to Office 365.
If you are using Microsoft 365 you should always leave the Use integration credentials for Exchange connectivity box unchecked, because Workspace automatically gets the credentials from Microsoft 365.