Dear @Devin Adam Sanubari,
Thank you for posting your question in the Microsoft Q&A forum.
Based on your description, the user can sign in to Outlook but cannot send or save emails. External senders receive “email not found at domain,” and Outlook mobile shows the account as blocked, even though the user is still listed as Active in Admin Center and no admin block was applied.
For better understanding your situation, please confirm for me some information as:
Has your peer encountered this issue before, or is this the first time it has happened?
Have you tried contacting your company’s IT team to have them check it’s possible that the user’s Microsoft 365 / Exchange Online license was removed or changed? which can cause the mailbox to become unavailable even though the account still appears active.
Have you checked with other users to see if they are experiencing the same issue, or is this problem only affecting that specific Outlook account?
In the meantime, here are some suggestions you can try:
Check internet connectivity
Disable spam filters in Anti-virus apps
Please understand that the more information you provide, the more effectively I can support.
Looking forward to your update.
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