Correct. Outlook clients will continue to work as usual.
Here is the default behavior for Outlook Clients when Modern Auth is enabled and when its not:
https://learn.microsoft.com/en-us/microsoft-365/enterprise/modern-auth-for-office-2013-and-2016?view=o365-worldwide#exchange-online
When you want the IOS Native Mail clients to use Modern Auth, then you would need to recreate their mobile profiles to take advantage of that , but until then they will continue to use Basic auth as long as its enabled.
Make sense?