A cloud-based service included in Microsoft 365, delivering scalable messaging and collaboration features with simplified management and automatic updates.
Disabling Direct Send doesnt disable the ability to spoof. It disables the ability to spoof without going through a connector or any authentication. Check with message tracking if those messages are going though an allowed connector.
Regardless, you should always be enforcing DMARC, SPF and DKIM for your recipient domains.
Direct Send, as defined in the blog post linked above in detail, is the term used for sending emails directly to your mailboxes from a domain you own without any user or on-premises connector authentication