Need help with Azure (not related to the outage)

We recently did a migration to a new tenant in Azure and in exchange (going from a regular email address to a .gov as well as moving to O365).

So, the issue that we are having, is that some of our service accounts and email accounts need to be able to send/receive emails without using MFA.

I created a security group, and put that group in System-Preferred multifactor Authentication, Exclude Target.

From what I understand that SHOULD make it so that MFA is no longer needed for anyone in that security group, but if I try to log in with one of those accounts, it is still requiring MFA, and will not allow things to be sent out through SMTP. Specifically one account is what we used for scan to email on some of our large MFPs, and another account was used for sending documents over email from a 3rd party program.

Is there something simple that I am missing? We are using the free azure account, so if this is something that I will need to upgrade to P1, that isn't going to make my bosses happy...