Fortunate and unfortunate. At least you know in which direction to start looking. My only remaining suggestion is to look at the RBAC roles you currently have and verify that the server that has Patch Manager deployed is listed as an accepted machine to conduct SMTP relay. My guess is that since is that you have an internal server (assumption) that SSL or TLS have to be set. Look at the encryption & port settings for starters and make sure the portal is configured correctly. Hopefully you can get this issue resolved. You can always look on the Microsoft forums for assistance for configuring Exchange servers.
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