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Hi @ajaybabu,
Welcome to Microsoft Q&A, and thank you very much for reaching out.
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Based on your description, I checked on your domain and found that your domain currently doesn’t return the required DNS record, which can lead to the error 550 you are seeing. I have sent the result through private message, feel free to check it there.
Regarding why the mailbox is still able to receive email, from my research, your MX record is confirmed to be present, and that alone is enough for other mail services to deliver messages to your domain.
Therefore, I strongly recommend you or your admin reviewing the domain DNS configuration again and verifying that your DNS records are correctly set. For more detailed guidance, you can check this Microsoft documentation here.
I hope this helps.
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