Hi @Mike O
Thank you for reaching out to Microsoft Learn Q&A!
Based on your description, I understand that the “Allow external senders to email this group” setting in the Exchange Admin Center is not functioning as expected.
From my own testing and research, I’ve encountered similar behavior, and it appears that several other users have reported the same issue. While this could potentially be a known issue, I have not found any official documentation that directly addresses it at this time. Therefore, I recommend contacting the Microsoft Support Team to address this issue directly by following one of the methods below:
- Submit a Service Request: The Global Admin should create a service request with Microsoft support to get advanced technical assistance and diagnostics. For detailed instructions on how to get support, please refer to Get support - Microsoft 365 admin | Microsoft Learn.
- Find Your Microsoft 365 Admin: If you’re unsure who the Global Admin is within your organization, you can find guidance on locating them here: How do I find my Microsoft 365 admin? - Microsoft Support
- Call Microsoft Support: For additional assistance, use this link to find the appropriate contact number: Customer service phone numbers - Microsoft Support
- Contact a Reseller (if applicable): If your Office 365 subscriptions are managed through a federated partner or reseller and the Global Admin cannot open a service request, they should contact the reseller’s support provider. The reseller can assist with initiating the request and coordinating with the Office 365 support team.
In the meantime, I discovered that modifying the equivalent setting for the Microsoft 365 Group in the Microsoft 365 Admin Center works properly. The Exchange Admin Center (EAC) also reflects the same updated setting as the Microsoft 365 Admin Center. This could serve as a viable workaround, in addition to using PowerShell as you mentioned.
I sincerely hope this information partially clarifies your situation and assists you in planning your solution. Please do not hesitate to reply if you have any updates.
Thank you for your understanding.
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