We are running latest build for Exchange 2016 CU23 but being throttled as build detection sees us running on CU23 without updates. Since we are on the latest build there is nothing to update to. We have a case with Microsoft (TrackingID#2405230030008265) and being shuffled between on-prem and M365 team with no immediate end in site. This is affecting day-to-day operations, and we are not at fault. We need the Exchange online transport team to intervene as it is your implementation that is throttling us incorrectly. We are using some of our 90 days pause to get around the issue for the moment, but we should not have to.
Updated advice form M365 Support: I discussed with my team, and I was informed that this is a known issue and Microsoft Product Group (PG team) is working on it to fix. I will get in touch with Escalation team to get more information about the ETA. I will keep you updated.
Since it is a "known issue" (i.e. your process is broken because it is incorrectly identifies on-prem Exchange versions as outdated and throttles/blocks email transport regardless) please turn it off. It is disrupting our on-prem services and inconveniencing Outlook users with workstation and mobile device lockups. Exchange is highly reliant on IIS which affects user Outlook sessions.