Navigate to this link and sign in with your work email address. https://mysignins.microsoft.com/security-info
Select 'Add sign-in method'
Give your app password a name. It can be anything, but it must be at least 8 characters. Please note, this is not the app password.
It will now display your app password, which can be copied by clicking the two squares to the right and used to enter into User Options - Distribution Email Accounts by the Applied Epic admin.