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Lots of big email services do quietly reject mail. They successfully accept it but then throw it away (sometimes not even in the spam folder for particularly high span scores).
That's their issue. Don't be a customer at such an email provider :shrug:

I had a legal dispute once where a shop didn't provide warranty on a product. They took the product in but then it was indefinitely in repair. Long story short, it ended up being helpful that I have email server logs that show every transaction, so that I could say "on date+time the email was delivered to IP address X, which was registered as the mail exchanger for your domain, and your server took the email with status code XYZ Queued <ID> For Delivery." Would have been interesting to hear what a judge has to say about it but they simply agreed to give the full purchase price back after that

Afaik that's not what Microsoft/Hotmail does though: since it rejects noncompliant setups (as well as a lot of legitimate email, unfortunately), the sender gets a delivery failure notification