It sounds like you're having issues connecting to your Microsoft Exchange server using your local DNS server. This could be because the configuration of your local DNS server is not properly set up to resolve the exchange server's hostname to its IP address.
To resolve this issue, you can try the following steps:
- Check the hostname and IP address of the exchange server and make sure they are correct and can be resolved by your local DNS server.
- Check the firewall and network settings to ensure that the device running Outlook is able to connect to the exchange server.
- Verify that the correct hostname or IP address of the exchange server is entered in the "Server" field in Outlook when setting up the email account.
- If the issue persists, you may want to consider using an external DNS server such as 8.8.8.8 temporarily to connect to the exchange server and then switch back to your local DNS server once the connection is established.
- If the issue still persists, you may want to consider contacting Microsoft support for assistance.
It's important to keep in mind that your internal domain name being the same as your external domain name could also be causing some issues, as it can cause confusion for both your local DNS server and for devices trying to connect to your exchange server. Consider changing your internal domain name to a unique name if possible.