I ran into this when using smtp.office365.com, using port 587 with SSL. I was able to log in to the account using portal.office.com and I could confirm the account had a license. But when I fired the code to send emails, I kept getting the net_io_connectionclosed error.
Took me some time to figure it out, but the Exchange admin found the culprit. We're using O365 but the Exchange server was in a hybrid environment. Although the account we were trying to use was synced to Azure AD and had a valid O365 license, for some reason the mailbox was still residing on the hybrid Exchange server - not Exchange online. After the exchange admin used the "Move-Mailbox" command to move the mailbox from the hybrid exchange server to O365 we could use the code to send emails using o365.