Hi @rodney hall , thanks for posting in our Q&A forum.
By research, if you select Internal relay, you must create a connector for mail flow from Microsoft 365 or Office 365 to your on-premises email server; otherwise recipients on the domain who are not hosted in Microsoft 365 or Office 365 won't be able to receive mail on your own email servers. For more information about setting up connectors, see Set up connectors to route mail between Microsoft 365 or Office 365 and your own email servers.
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