SMTP Error: Could not authenticate error in Drupal when AWS SES SMTP access key

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I updated the access key for an IAM SMTP user which was earlier used to send emails. After updating the new active key in the drupal application, email functionality stopped working. I am getting the following error from the application.

SMTP Error: Could not authenticate.

Troubleshooting the issue has led me to this https://aws.amazon.com/premiumsupport/knowledge-center/ses-rotate-smtp-access-keys/

which mentions that if there is an access key update, it must be changed to SES SMTP format. With the code mentioned, I generated key in a different format and added to the application but still no luck.

Have anyone come across this issue before?

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