Dear Michael_Li_TD,
Good day! Thank you for posting to Microsoft Community. We are happy to assist you.
I have been testing your query from my end and based on my test result, when you disable recall read messages in admin center or via PowerShell, you will receive recall message report in your inbox but with Failed status. However, if you disable cloud-based message recall in admin center or via PowerShell using "MessageRecallEnabled : False" Command, it will disable the new cloud recall feature and restore the "old" recall experience in Outlook. This process may take several hours to take effect. Therefore, you may need to wait up to 24hr. You can refer to the screenshot of my test result.
Test #1: When you only disable the recall messages read by the recipient in admin center and via PowerShell Command. You will receive a recall message email from the cloud, but the recall report shows the recall is failed. To see the recall report, you can click on View Message Recall Report link within the recall message you received.


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Test #2: Disable the cloud-based message Recall function in the admin center and via PowerShell command. At this point, the new cloud-based recall function will be disabled, and the "old" recall function will be restored, therefore when you recall email, you will not receive recall message email from the cloud instead the recipient receives a permission email with dialogue box. you can refer to the screenshot below.

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Moreover, I can confirm you that, when using the Exchange admin center or PowerShell "-RecallReadMessagesEnabled $true/false" or "-MessageRecallEnabled $true/false" commad to disable recall function. It will not completely disable the recall message feature in Outlook, instead it disables only the new (cloud based) recall feature and restores back to "old" recall function.
However, after disabling the recall message feature and waiting for more than 24 hours, can you please provide us with a message recall report if you are still able to recall the message read by the recipient?
I look forward to your update. Please feel free to let me know how it goes or if I got you wrong. If you still have any concerns, please let me know so I can provide more suggestions.
Thank you for your precious time. Have a nice day.
Sincerely,
Libeamlak | Microsoft Community Moderator