Forum Discussion
Microsoft Teams email server
DusanGligoric my guess from your description is that you have both on premises mailboxes and mailboxes in Exchange online associated with your Teams accounts, the 'unable to reply' is because it's not coming from the mailbox your users are using.
Assuming your local server is Exchange, you need to configure it so that Teams can access it over the internet, it's relatively complex to do but instructions are here How Exchange and Microsoft Teams interact - Microsoft Teams | Microsoft Learn.
In general it's simpler to set up Exchange Hybrid between local server and Exchange Online, which is also the first step towards migrating email. Teams doesn't need you to migrate, but it really should be your longer term roadmap. Create a hybrid deployment with the Hybrid Configuration wizard | Microsoft Learn
If your local server isn't Exchange Online then you are simply out of luck.