I'm having this same issue, running 8.4.7 on Mac. I can get emails out, but most of the time I get an authentication error. Seems that I can get one clean run in and then everything dies. Note that I've gotten a test email out to all recipients (including a few CCs) and even the "report." But a single run is all I get before I get the 535 error.
Here's the log I'm getting:
[01] 8/20 10:42:13 ~ Opening connection for delivery...
[01] 8/20 10:42:13 ~ Connecting to email-smtp.us-east-1.amazonaws.com Port:465
[01] 8/20 10:42:13 ~ Connected
[01] 8/20 10:42:13 > EHLO [192.168.1.70]
[01] 8/20 10:42:13 220 email-smtp.amazonaws.com ESMTP SimpleEmailService-803674111 m7csWo2v8W4ebFx4XD7v
[01] 8/20 10:42:13 > EHLO [192.168.1.70]
[01] 8/20 10:42:13 250-email-smtp.amazonaws.com
250-8BITMIME
250-SIZE 10485760
250-AUTH PLAIN LOGIN
250 Ok
[01] 8/20 10:42:13 > AUTH LOGIN
[01] 8/20 10:42:13 250-email-smtp.amazonaws.com
250-8BITMIME
250-SIZE 10485760
250-AUTH PLAIN LOGIN
250 Ok
[01] 8/20 10:42:13 > AUTH LOGIN
[01] 8/20 10:42:14 334 VXNlcm5hbWU6
[01] 8/20 10:42:14 > [SES SMTP account]
[01] 8/20 10:42:14 334 VXNlcm5hbWU6
[01] 8/20 10:42:14 > [SES SMTP account]
[01] 8/20 10:42:14 334 UGFzc3dvcmQ6
[01] 8/20 10:42:14 > ********************************************
[01] 8/20 10:42:15 535 Authentication Credentials Invalid
500 Error: command not implemented
[01] 8/20 10:42:15 > HELO [192.168.1.70]
[01] 8/20 10:42:15 250 email-smtp.amazonaws.com
[01] 8/20 10:42:15 > MAIL FROM:[]
[01] 8/20 10:42:15 530 Authentication required
[01] 8/20 10:42:15 ~ Relaying denied error, giving up!
[01] 8/20 10:42:15 ~ Fatal error, giving up!
[00] 8/20 10:42:15 ~ [-]
[00] 8/20 10:42:15 ~ Closing all streams
[00] 8/20 10:42:15 ~ Creating report...
[00] 8/20 10:42:15 ~ Finishing...
[00] 8/20 10:42:15 ~ Finished.