You'll need to generate and use an app password. An app password is a long, randomly generated code that gives a non-Yahoo app permission to access your Yahoo account. You’ll only need to provide this code once to sign in to your third-party email app.

Sign in and go to your Account security page
Click Generate app password or Manage app passwords.
Select your app from the drop down menu and click Generate.
Follow the instructions below the password.
Click Done.
Go to "Email Template" tab, paste your app's password to Password field
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