PROC PWENCODE authorization issue

[Leo9]

I am trying to send email from SAS and everything is working fine and as intended when I type my actual pwd in the SAS code using EMAILPW = option. Since I do not want to use my actual pwd in the program, I created an encoded pwd using PWENCODE procedure and stored it in the file with name 'pwfile'

1) Here is the first code to create the encoded pwd

filename pwfile 'Z:\Private\pwd\pwfile.txt';
proc pwencode in='pwd' out=pwfile;
run;

Now I am using code below to use this encoded pwd but I keep on getting login failure error.  Basically, SAS is not recognizing the encoded pwd correctly (as intended). 

Here is the second part for email. 

2) 

filename pwfile

'Z:\Private\pwd\pwfile.txt';

options symbolgen;

data _null_;

infile pwfile truncover;

input line :$64.;

call symputx('dbpass',line);

run;

options

  emailsys=smtp 

  emailauthprotocol= plain

  emailid = 'user@xyz.com'

  emailhost='smtp.office365.com'

  emailpw = "&dbpass"

  emailport=587

;

options emailhost=

 (

   'smtp.office365.com'  port=587

   STARTTLS  auth=login 

   id='user@xyz.com'

    pw="&dbpass" 

 )

;

/* Send email */

filename mymail email

    to="user@xyz.com"

attach = "Z:\Private\pwd\test.docx"

    subject="test";

data _null_;

    file mymail;

    put "this is test email";

run;

filename mymail clear;

Please provide any suggestions to correct this error. 

[Patrick]

For debugging purposes:
1: Run your program with code as simple as possible using your clear text password. Once that works:

2: Only replace the clear text password with the encoded version (not passed via a macro variable) and run again. Does this work or already fail?