zPGMc - The fix is already implemented worldwide, so your (or anyone's) tenant won't be impacted by this issue anymore.
We just tried disabling direct send again and we are STILL GETTING THE SAME ERROR saying that Direct Send is disabled for our tenant when sending from and to an email address tied to a validated email domain in ACS. I'm going to open an Azure Support ticket, but I want to comment here as well. Since there is no way for us to validate that anything has changed except by disabling direct send and then testing, we are flying bling on what might be missing here. Sending to email addresses in other domains still works fine. So whatever fix was implemented is apparently not applied to at least our tenant.