gnus: fetch mails over IMAP from Outlook mail server

I’m trying to enable gnus to work with Outlook server (https://outlook.office.com/owa). At first I tried to re-use my old configuration for gmail (which worked fine for several years), but it didn’t work in Outlook case.

Then I googled a lot, and it seems that the only way to make it work is to have davmail mail gateway on your workstation, and configure gnus to connect to davmail over IMAP.

Before I start digging in davmail more deeply, I’d like to clarify:

1. Is davmail really necessary?
2. I only need a single mail client to connect via DavMail to Outlook. Am I right that I only need workstation configuration?
3. If it is only workstation configuration, does it mean DavMail will only run as a GUI application? Can I not run it via service as a background process?

Below is my gnus configuration from gmail account which I tried to adopt for Outlook:

;;
(setq user-full-name "My Name")
(setq user-mail-address "my.email@outlook")

(setq smtpmail-auth-credentials "~/.authinfo")

(setq gnus-select-method
      '(nnimap "my_mail"
          (nnimap-address "outlook.office365.com")
          (nnimap-server-port 993)
          (nnimap-stream ssl)
          (nnimap-search-engine imap)
          (nnimap-authinfo-file "~/.authinfo")))

(setq smtpmail-stream-type 'ssl
       smtpmail-smtp-server "smtp.office365.com"
       smtpmail-smtp-service 587)

My ~/.authinfo :

machine outlook.office365.com login my.email@outlook password my_password port 993

Now when I start gnus it prints this in minibuffer:

Opening connection to outlook.office365.com via tls...
nnimap (my_mail) open error: ‘NO LOGIN failed.’.  Continue? (y or n)

machine outlook.office365.com login <email_address> password <pasword> port imaps 
machine smtp.office365.com login <email_address> password <password> port 587