Hello Jay Kim,
Thanks for sharing this details. To protect your domain details, we have removed some personal information from your shared screenshot.
Yes, your TXT record is not correctly update. Kindly contact your local domain provider and ask them to update correct TXT records (as visible in O365 side) from their local DNS site. Once they update correct record from there end, it will sync up with Office 365. (Note: sync time totally depends on local domain provider server). Once record shows in green status or (ok), send one test email and check.
Thank you so much for your co-operation.
Regards,
Ankita Vaidya