Processes in Microsoft 365 for setting up Office apps, redeeming product keys, and activating licenses.
Dear GJB_432,
Good day!
Thank you for posting to Microsoft Community. We are happy to assist you.
For the situation you encountered, we do understand the inconvenience you encountered and apologize for it.
From your mentioned description, we understand you are using SMTP AUTH client-submission and SMTP-rely, generally there are three options available to set SMTP, you can check it. For your reference How to set up a multifunction device or application to send email using Microsoft 365 or Office 365 | Microsoft Learn. In order to give a solution, we would like to confirm whether this inconsistency is occurred for inside or outside the organization emails?
On the other hand, please kindly check your internet and try to see the result via using different devices to send emails using Microsoft 365.
So, once you please try to setup another options from this above mentioned article and see the result.
Moreover, here is the detailed fixed issues related with SMTP, you can refer, it may provide some suitable information for you Fix issues with printers, scanners, and LOB applications that send email using Microsoft 365 or Office 365,.
If the issue still persist, as you mentioned "sometimes it works fine, other times it fails and there appears to be no consistency", since issue occurs sometimes, so to check this query further, required more technical resources and as we are belongs from Microsoft community site, we have limited resources, so for that we recommend to kindly contact our technical team via Get support - Microsoft 365 admin | Microsoft Learn, therefore they will check and assist you further.
We look forward to your update, Thank you for your precious time.
Stay safe and healthy. Have a nice day!
Sincerely,
Libeamlak | Microsoft Community Moderator