As the message suggests, you can only use external address, you cannot journal to any address within your Office 365 organization, or any other O365 organization for that matter. Read the documentation for more details: https://learn.microsoft.com/en-us/exchange/security-and-compliance/journaling/journaling#journaling-mailbox
Create Journaling on Exchange online
I configure journaling on exchange online, but always get error : "error
The JournalEmailAddress can only be a mail user, a mail contact or an external address."
Please tell me, how to fix?
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Eric Yin-MSFT 4,386 Reputation points
2021-02-11T07:18:48.367+00:00 You can’t use exchange on-line mailbox as journal mailbox. The Journal Email Address can only be a mail user, a mail contact or an external address. Normally, you can use any external mailboxes. There are no any special requirements.
If you really want to use exchange online mailbox to receive these Journaling emails, the workaround is that you can forward all emails from the external mailbox to the Office 365 mailbox.
Actually, use Office 365 mailboxes to receive Journaling emails has disobeyed the purpose of the Journaling feature. To better protect customer's profit, we don't recommend this method.
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