Remove digest-md5 from dovecot and postfix configs
Seeing as the current implementation does not work with Outlook (and a lot of people use Outlook), it would make sense to remove the digest-md5 option from dovecot and postfix configs. These options keep coming back on a Plesk update so it would better to just remove them completely.
https://support.plesk.com/hc/en-us/articles/115001001933-Cannot-set-up-Plesk-mail-IMAP-account-in-Outlook-SASL-DIGEST-MD5-authentication-failed-authentication-failure
https://support.plesk.com/hc/en-us/articles/213917625-Outlook-fails-to-send-an-email-SASL-authentication-failure-On-Plesk-for-Linux

Thank you for your input. We will consider this functionality in upcoming releases if it is popular. Everyone, please continue voting for this feature if you consider it important.
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Bitpalast GmbH commented
Recently we went through significant testing efforts on several servers with a very high number of domains and email users that can be considered representative. Among all ranging from Thunderbird, Outlook, Android Mail, Apple Mail, iPhone Mail we found that the only viable solution to the "failed auth" issue caused by DIGEST-MD5 password mechanism is to remove the "digest-md5" entry from Dovecot as mentioned in the FAQs.
Please vote for this feature! It's a truly important feature to implement, because this will save hundreds of thousands of admins a lot of trouble with users that use mail apps where the auth mechanism cannot be freely picked.