Yes, an online exchange mailbox (Recently migrated) sending email to delegated mailbox which is in On-prem exchange. Recipient is mailbox, not distribution group.
Below is the NDR report
From: Microsoft Outlook <MicrosoftExchange329e71ec88aerewrewr34r3er3@xyz.com>
Sent: Tuesday, April 25, 2023 10:50 PM
To: ABC@xyz.com
Subject: Undeliverable: RE: Testing
Delivery has failed to these recipients or groups:
DFC (Mailbox) (dfc@xyz.com)
Your message couldn't be delivered because delivery to this group is restricted to authenticated senders. If the problem continues, please contact your email admin.
Diagnostic information for administrators:
Generating server: srv1.xyz.com
dfc@xyz.com
Remote Server returned '550 5.7.133 RESOLVER.RST.SenderNotAuthenticatedForGroup; authentication required; Delivery restriction check failed because the sender was not authenticated when sending to this group'
Original message headers:
Received: from srv3.xyz.com (10.45.92.167) by
srv1.xyz.com (10.45.92.161) with Microsoft SMTP Server
(version=TLS1_2, cipher=TLS_ECDHE_RSA_WITH_AES_128_CBC_SHA256_P256) id
15.1.2507.23; Tue, 25 Apr 2023 10:20:19 -0700
Received: from NAM11-CO1-obe.outbound.protection.outlook.com (10.45.5.9) by
srv3.xyz.com (10.45.92.169) with Microsoft SMTP Server
(version=TLS1_2, cipher=TLS_ECDHE_RSA_WITH_AES_128_CBC_SHA256_P256) id
15.1.2507.23 via Frontend Transport; Tue, 25 Apr 2023 10:20:19 -0700
ARC-Seal: i=1; a=rsa-sha256; s=arcselector9901; d=microsoft.com; cv=none;
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ARC-Message-Signature: i=1; a=rsa-sha256; c=relaxed/relaxed; d=microsoft.com;
s=arcselector9901;
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ARC-Authentication-Results: i=1; mx.microsoft.com 1; spf=pass
smtp.mailfrom=xyz.com; dmarc=pass action=none header.from=xyz.com;
dkim=pass header.d=xyz.com; arc=none
DKIM-Signature: v=1; a=rsa-sha256; c=relaxed/relaxed;
d=xyz.onmicrosoft.com; s=selector1-xyz-onmicrosoft-com;
h=From:Date:Subject:Message-ID:Content-Type:MIME-Version:X-MS-Exchange-SenderADCheck;
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Received: from IA0PR12MB8376.namprd12.prod.outlook.com (2603:10b6:208:40b::9)
by MN2PR12MB4391.namprd12.prod.outlook.com (2603:10b6:208:269::21) with
Microsoft SMTP Server (version=TLS1_2,
cipher=TLS_ECDHE_RSA_WITH_AES_256_GCM_SHA384) id 15.20.6298.45; Tue, 25 Apr
2023 17:20:18 +0000
Received: from IA0PR12MB8376.namprd12.prod.outlook.com
([fe80::10c3:c64d:40df:1f69]) by IA0PR12MB8376.namprd12.prod.outlook.com
([fe80::10c3:c64d:40df:1f69%2]) with mapi id 15.20.6319.033; Tue, 25 Apr 2023
17:20:18 +0000
From: ABC <abc@xyz.com>
To: User1 <User1@xyz.com>
CC: "DFC" <dfc@xyz.com>,
"DFC (Mailbox)" <DFC@xyz.com>
Subject: RE: Testing
Thread-Topic: Testing
Thread-Index: Adl0RyNKOqPdI+SITRStvu9gakghoADG7YPAAA3OrUA=
Date: Tue, 25 Apr 2023 17:20:18 +0000
Message-ID: <IA0PR12MB83763822EB7FDDE52A13B179EF649@IA0PR12MB8376.namprd12.prod.outlook.com>
References: <a4fa488e97ce4884bea0ea2857d37fbf@xyz.com>
<389a1175a6ff47d29372b6b4f6346afa@xyz.com>
In-Reply-To: <389a1175a6ff47d29372b6b4f6346afa@xyz.com>
Accept-Language: en-US
Content-Language: en-US
X-MS-Has-Attach:
X-MS-TNEF-Correlator:
authentication-results: dkim=none (message not signed)
header.d=none;dmarc=none action=none header.from=xyz.com;
x-ms-publictraffictype: Email
x-ms-traffictypediagnostic: IA0PR12MB8376:EE_|MN2PR12MB4391:EE_
x-ms-office365-filtering-correlation-id: 86eb81c6-070b-4fe0-0760-08db45b1579f
x-ld-processed: cd426fe2-53cb-405b-9329-a105996c296e,ExtAddr
x-microsoft-antispam: BCL:0;
x-microsoft-antispam-message-info: Xv2dHR/rXFQFnFCUFP70iNfMUfGLTeKBC5Roxpb8SeOpnG7/d1d077iCXFqV/UnE4bs7xMNDRGGyn8SMjYuK6Zw2hOQsjk9feWqnsYAM1EOkHE0la1/VfrDdH4nhV918F7Mz9gaziLAYUoFeuzwSuPMLqyV9+u56BzfxqCW8GIlF+RO/wPPL+rxKDXWfWGghsVNoLSoFrE+PX/Vxn2YPPOru87kuq+2y6X376pRHANxa5KSOSBrlPbiGxLnDnhfqt7kCRGNHvW2PqJ5+k6d+gKPi1+qczgnKMzKgMK8CAIsxf6l0V3sTDDFQ7uDS5L1Hyhd0q81maccAZk/VnEdEwTp/fvNR8GamDLPHfv3KeDw4ULiOcyeYImebcIQ1q+/xBCIEeYOKe8YL151zXiUbiVu5k7LtWqgqDBxp6eqPW/XYu9a6hJZG1EkiQjLUiCK1skmyYNS3vJjT/3d2i55zidlPBGLhhSHHVoK9ZAXDj1yYdMZnQs+EW9U8X0x729SQBavkzeLmkpsatsJWw3sXiyffMfytOGWrBHNRPOCflg66dEVjUjPLWaqBs8yCYvgQFhnCDJf5JV2LZ9+zLnlocv9MLv3dOGUgajzEYU69uLRgX15bO1IHHzJ/yhgGf0l05ypw4Dq8/BHN4GR77n0muA==
x-forefront-antispam-report: CIP:255.255.255.255;CTRY:;LANG:en;SCL:-1;SRV:;IPV:NLI;SFV:SKI;H:IA0PR12MB8376.namprd12.prod.outlook.com;PTR:;CAT:NONE;SFS:;DIR:INT;
Content-Type: multipart/alternative;
boundary="_000_IA0PR12MB83763822EB7FDDE52A13B179EF649IA0PR12MB8376namp_"
MIME-Version: 1.0
X-MS-Exchange-CrossTenant-AuthAs: Internal
X-MS-Exchange-CrossTenant-AuthSource: IA0PR12MB8376.namprd12.prod.outlook.com
X-MS-Exchange-CrossTenant-Network-Message-Id: 86eb81c6-070b-4fe0-0760-08db45b1579f
X-MS-Exchange-CrossTenant-originalarrivaltime: 25 Apr 2023 17:20:18.4447
(UTC)
X-MS-Exchange-CrossTenant-fromentityheader: Hosted
X-MS-Exchange-CrossTenant-id: cd426fe2-53cb-405b-9329-a105996c296e
X-MS-Exchange-CrossTenant-mailboxtype: HOSTED
X-MS-Exchange-CrossTenant-userprincipalname: wVZ9iXMNJsvFyS1oe08qN8M1nRVa9jcQF2OMnN21nqU6u0c4W86WbnQL04a/TS39ldlXQNLnQk8Lh0AX8+lo0zC4+cf1CRTWBmulIhODLno=
X-MS-Exchange-Transport-CrossTenantHeadersStamped: MN2PR12MB4391
X-OrganizationHeadersPreserved: MN2PR12MB4391.namprd12.prod.outlook.com
Return-Path: abc@xyz.com
X-CrossPremisesHeadersFiltered: srv3.xyz.com