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Based on the screenshot, the highlighted member shows only a display name, without an email address. Since Message trace also does not show a delivery attempt to the external address, the member may not be configured as a valid mail-enabled recipient.
This can occur when the Distribution List contains a directory object without the mail-routing attributes required by Exchange Online. For an external recipient, the member should normally be represented by a mail-enabled object, such as a Mail Contact or Mail User, with a valid external delivery address.
Therefore, this appears more likely to be a recipient object or group membership configuration issue than a downstream mail-flow issue.
I recommend checking the affected member in Exchange Online PowerShell:
Get-DistributionGroupMember -Identity "Distribution List Name" |
Format-Table DisplayName,PrimarySmtpAddress,RecipientType,RecipientTypeDetails
Confirm that the affected entry has a valid PrimarySmtpAddress and is recognized as a mail-enabled recipient, such as a MailContact or MailUser. For details, see Get-DistributionGroupMember.
If the entry has no email address or is not mail-enabled, remove it from the Distribution List and create a Mail Contact for the external recipient. In the Exchange admin center, go to Recipients > Contacts > Add a mail contact, enter the external email address, and then add the newly created contact to the Distribution List. See Manage mail contacts in Exchange Online.
You can verify the external delivery address by running:
Get-MailContact -Identity "External Contact Name" |
Format-List DisplayName,PrimarySmtpAddress,ExternalEmailAddress
After confirming that ExternalEmailAddress contains the correct address, send a new test message and check Message trace again. If the external recipient now appears in the trace, review the delivery status or SMTP response to determine whether any further mail-flow troubleshooting is required.
I hope this helps. Thank you for taking the time.
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