The command is supported but the specific parameter used is not implemented.
SMTP error 504 indicates a valid command with an unsupported parameter:
The authentication mechanism (PLAIN, LOGIN, CRAM-MD5) isn't supported by the server.
The specified encoding parameter isn't recognized or supported.
An SMTP extension parameter that the server doesn't support.
If related to AUTH, try a different authentication method (PLAIN, LOGIN, or CRAM-MD5).
Use EHLO to check what parameters the server supports before using them.
Configure your mail server to use only standard, widely-supported parameters.
504 5.5.4 Unrecognized authentication type
504 Command parameter not implemented
504 5.7.4 Unrecognized authentication mechanism