@chanart I did a small test and the Test Send did spin up without success and I’m not seeing the test email being delivered (and I’m not receiving it on the destination). This seems like it has to do with the mail cather (Mailhog) feature in Local, which does exactly that… catch outgoing emails to a local inbox and not send them to the actual destination.
Either way, please consider local installation unsupported by ASE’s (SMTP) Email Delivery module. ASE is meant for use on production sites.
Marking this resolved for now.
p.s. just out of curiosity, which SMTP service are you using? A regular mailbox? Or, something from Mailgun et al.