Version 2 of Exchange Online PowerShell module supported Modern Authentication, and is easily recognizable by the Connect-ExchangeOnline command (simply put). More information about the deprecation of V1 can be found in the Moving from the Exchange PowerShell v1 Module to the v2 Preview Microsoft blog from May 2022. For Exchange server on-premises, this does not change, and you can still use the New-PSSession command to setup a PowerShell connection to Exchange server. Please be aware that we are talking about Exchange Online.
If you still depend on it, support will retire anytime soon, as announced in Message Center bulletin MC407050. With the deprecation of Basic Authentication in Exchange Online, V1 of Exchange Online PowerShell will no longer work. Later, V1 became available as an installable module, which added support for Modern Authentication including Multi-Factor Authentication. This version 1 of Exchange Online PowerShell interacted with a PowerShell host session on the server, and used Basic Authentication. We have been using Remote PowerShell (RPS) for years to connect to Exchange Online using the New-PSSession command. Exchange Online PowerShell is (was) available in three different versions and I will discuss these briefly. It’s a small blog, but the impact can be serious. Microsoft recently released a blogpost about deprecating Remote PowerShell in Exchange Online.
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