If the test emails are not working, then you'd want to troubleshoot that.
Troubleshooting for test emails not working that we’ve done, before any of this basic authentication side changed, is mentioned in the following Workflow Email Troubleshooting blog:
community.dynamics.com/.../workflow-notification-email-troubleshooting
Pulling from this blog, things we’d look at would normally be:
--Password length and SMTP authentication type, but from the screenshots it seems it is set to Anonymous Authentication. Have you tried setting it to Basic Authentication and putting in the email account and password for an Exchange account that would have access to email through the specified SMTP server? The password would need to be 15 characters or shorter.
--If using Basic Authentication, we’d also need to make sure the account did not have multi-factor authentication (MFA) or any type of two-way verification setup on it.
--If you ping the SMTP server name from the machine(s) trying to send emails through, does it return a IP address or an error message like the blog mentions?
--In most cases, the SMTP server required SSL/TLS encryption, from your screenshot, I noticed this option was not marked, so you may want to verify that.
The port number is also usually port 25 or 587, but your SMTP server may be different, especially if local.
--TLS 1.0 must be enabled on the SQL Server holding the GP databases as well as on the SMTP server itself. Verify this, as this is something that could’ve changed recently without the client knowing.
***This all being said, while we were told that the SMTP email wouldn't be impacted by the deprecation of Basic Authentication, we have seen a couple cases where SMTP email has suddenly stopped working after Oct. 1st, 2022. My recommendation, especially if using Exchange email in Dynamics GP, is to get upgraded to GP 18.4/18.5 and implement Modern Authentication, which will also impact the workflow email.
Thanks