Encountered the same issue on 7.3.1 2110. Turns out to be a bug.https://bst.cloudapps.cisco.com/bugsearch/bug/CSCwd97020
Upgraded to 7.4.2.2 and it worked like a charm.
This worked like a charm. Customer was under the impression that SMTP was through 0365 but it wasnt. Also like you mentioned there is no way to configure relay or any tracking on O365.
Thanks guys. this is my working configuration for ASR1001 with mgmt-vrf .
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service call-homecall-home! If contact email address in call-home is configured as sch-smart-licensing@cisco...
I had the exact same problem, ended up using password authentication (no MD5) to make it work. Would like to know if someone found the solution to this.