This exception (TooManyTransientFailureRetriesPermanentException) looks like a service migration error (vs. your Exchange Server throwing this exception?) Please open a support ticket if you are working on migrations to Exchange Online.
The truth is - we are not aware of any migration breakage after August update is installed; that's not to say there is not a scenario that might be impacted - rather we have not received reports that were verified like a regression in August 2026 update. But support tickets could help us identify if there is such a thing...
EDIT Aug 24 2026: I think we have now connected all the dots. Acknowledging the fact that if not all servers involved in MRS migration are updated to August 2026 SU, MRS migrations can fail. Update all servers to August 2026 SU and it will be solved. Added a known issue to the blog post now.