laravel gmail error "Expected response code 250 but got code "535","

My laravel application used to send emails through gmail just fine, but all of the sudden I get the following error.

I did an update of some views last week but haven't touched any config files, no idea if it is related.

Swift_TransportException in AbstractSmtpTransport.php line 383: Expected response code 250 but got code "535", with message "535-5.7.8 Username and Password not accepted. Learn more at 535 5.7.8 http://ift.tt/2d1Efv4 l6sm9633814wmg.11 - gsmtp "

Because the account has two step authentication Im using a app password as suggested here.

Also I enabled acces for less secure apps here.

Also I tried the captcha from google but it did nothing.

To be sure the password is correct I printed the env variable and it is correct. Is there any new gmail limitation or can I check anything else on why it is failing?

via Chebli Mohamed