Migration to MS 365 error IMAP / Dovecot

NethServer Version: 7.9.2009
Module: Email/DOvecot

Hello everyone, I am stuck trying to migrate mailbox to MS 365. Getting the following error:

ImapNoPermissionPermanentFailure: Imap server reported an error during SLECT indicating that the current user is not permitted to carry out the requested operation: 'Permission denied )0.001 + 0.000 secs).'.

I tried Authenticating with target user credentials as well as the username*root credentials.

imap logs are same every time:

Nov 15 04:57:18 mail dovecot: imap-login: Login: user=, method=PLAIN, rip=, lip=, mpid=14068, TLS, session=<wxDevCkK/Kw0Yflt>
Nov 15 04:57:19 mail dovecot: imap(test02@nethserver.mahir.ba): Logged out in=196 out=2138