Hi Atharva Diwan,
Good afternoon and thank you for your question. First, please remove the email address on the screenshot that you have provided since it is PII.
I tested /me/sendMail on my environment and I was able to send emails to my M365 account to another M365 account, Outlook Live and GMail with 202 code. It is highly possible that the issue that you have is bound only to the recipient or recipient's organization.
Here are next steps that you can do:
- Reach out to the recipient and verify if they have any transport rules or inbox rules.
- Create a ticket with Microsoft 365 Support to assist you on getting message trace (or extended message trace) to investigate why the email has been rejected.
I hope this helps. If I answered your question, please Upvote it and accept it as an answer.