Q0723 - Exim/exim GitHub Wiki
I can't get Pine to work with PLAIN authentication; Exim keeps responding "535 Incorrect authentication data".
You need to have this setting in your PLAIN authenticator:
server_prompts = :
This is missing in the examples in early Exim documentation, because it was not realized that PLAIN authentication could be requested by a client without sending the data with the request. If the data is not sent, an empty prompt is expected.