Hi @Matt Atkins , I'm sorry to hear that you're facing this issue.
Your understanding is correct; MX records are used for inbound emails. However, some mail servers check the sender domain's MX record as an anti-spam measure. If the sender does not have an MX record, the email may be rejected.
To resolve this, you need to add a valid MX record to your custom domain. Since ACS does not currently provide an MX record, you will need to obtain one from your domain registrar. Alternatively, you can check with the receiver to see if there is a way to exempt emails sent from your domain from this MX record rule.