It seems you are using an imap mail account. The error message mentions 'Authentication' failure.

Usually, when you update the password on an imap account the OAuth token gets auto updated, but that depends upon whether you are still using the older system which Gmail is not so fond of using.

re: 'Authentication Method': If you are still using 'Normal Password' and not 'OAuth', you may encounter a few issues and gmail will deliberately block access on occasions, just to force you to logon to webmail and reset access options. So if not currently using OAuth then Either change to the settings I have stated to use it and shown in images OR In webmail account accessed via a browser you have to select the option to use' Less secure apps'.

In Thunderbird, you need to edit the stored password. Menu app icon > Options > Options > Security > 'Passwords' tab click on 'Saved Passwords' clickon 'Show Passwords' Right click on imap and smtp lines and select 'Edit Password' Once all completed restart Thunderbird.

What server settings are you using ? OAuth Authentication Method for imap info. I have gmail imap account and I'm using the server settings shown in the images below for incoming server settings and outgoing smtp server settings. Username = full gmail email address.

If you need to swap to using OAuth, then note gmail will prompt you to enter email address and your password, just to check you really are you. Then an OAuth token gets inserted into Thunderbird and stored in same place as passwords. From then onwards Thunderbird will access server using the token and not the password.