Sudden change in Verizon SMTP protocol breaks email clients

On Friday 8/1/2014 between 10:23 am and 3:12pm EST Verizon's SMTP servers changed from sending the following lines:
250-AUTH PLAIN LOGIN
250-AUTH=LOGIN PLAIN
to these:
250-AUTH DIGEST-MD5 PLAIN LOGIN CRAM-MD5
250-AUTH=LOGIN PLAIN
These two lines are inconsistent and are breaking my MDaemon email client, which now thinks it can authenticate using
CRAM-MD5 encoding.  This encoding doesn't appear to be supported by Verizon, since I get the following error:
500 5.7.0 Unknown AUTH error -1 (Internal authentication error).
I've had no luck using telephone support.  Hopefully someone at Verizon will see this and respond.

Important Notice: If your MDaemon users authenticate against an Active Directory, you must disable ... honor APOP & CRAM-MD5 under Setup > Default Domain / Servers > Default Domain & Servers > Servers in your MDaemon Server. Otherwise users will not be able to log on to MailStore Server.
looks like the setting will be in that section.

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