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Hello SJS,
Thanks for your post in Microsoft Q&A.
That is a very common and incredibly frustrating DKIM issue, so I completely get your confusion. Honestly, the fact that you've already used MXToolbox to verify the records tells me you've done everything right on your end. This almost always means the problem isn't with your DNS provider, but that Microsoft's validation check is simply "stuck".
It likely cached the old, incorrect result and is refusing to look again.
Before we get to the fix, let's do one quick 30-second sanity check, because those long CNAME values can be tricky:
In your DNS settings, just double-check that the Host Name is exactly
selector1._domainkey (and not selector1._domainkey.`yourdomain.com`).
Then, give the Points to value one last look to make sure it's a character-for-character match with what Defender is asking for.
If you're confident that all looks good, then it's time to give the system a nudge to force it to re-validate. The go-to solution for this is to quickly toggle DKIM off and on again for that domain. The cleanest way is with a few PowerShell commands.
You'll need to connect to Exchange Online. If you don't already have the module, this first command will grab it for you: Install-Module -Name ExchangeOnlineManagement
Then, connect to your account (you'll get a sign-in prompt). Make sure you're using an account with admin rights: Connect-ExchangeOnline
Now, run this command to disable DKIM for your specific domain (just replace `yourdomain.com`):
Set-DkimSigningConfig -Identity `yourdomain.com` -Enabled $false
Give it about five minutes to process, then run this last command to turn it back on:
Set-DkimSigningConfig -Identity `yourdomain.com` -Enabled $true
That final step is what forces Microsoft's servers to perform a completely fresh lookup of your DNS records. I'd give it about an hour after that, and your "CnameMissing" error will be gone when you check the Defender portal again.
Hope this helps. Let me know how it goes!
Best regards,
Alex | Microsoft Q&A Support Specialist