Teams Presence Issue

For our Exchange On-prem Users we are seeing the below. We have a full hybrid exchange server setup. This used to work fine. Exchange 2016 CU23 build 15.1.2507.39. Only recent change was updating the Exchange server. Anyone experienced this issue?

For some users (doesn’t seem to be affecting all users), their Outlook Out of Office status is not showing in their Teams status/Presence. Even after a few days. 
For all users who I have tested with if they have a meeting in their diary and the free/busy information of the meeting is set to “Show as Busy” this is not updating their Teams Presence to Busy/In a Meeting.

In the Teams Calendar Connectivity Tester

Testing if the specified user mailbox REST API endpoint is marked as discoverable by the Teams middle-tier service.

The user mailbox REST API endpoint is marked as undiscoverable by the Teams middle-tier service.

I can see in the rest api logs

DispatchException=Microsoft.Exchange.Services.OData.ODataResponseException: The value 'serveraddress/api/v2.0/me/MailboxSettings/automaticRepliesSetting' of parameter 'Resource' is not supported.    at Microsoft.Exchange.Services.OData.Model.SubscriptionFactory.GetBrokerSubscription(INotifiableResource notifiableResource  Subscription template  Boolean requiresBrokerProxy)    at Microsoft.Exchange.Services.OData.Model.SubscriptionProvider.Create(Subscription template)    at Microsoft.Exchange.Services.OData.Model.CreateSubscriptionCommand.InternalExecute()    at Microsoft.Exchange.Services.OData.ODataCommand`2.<Execute>b__9_0()    at Microsoft.Exchange.Diagnostics.RequestDetailsLoggerBase`1.TrackLatency[TResult](Enum latencyMetadata  Func`1 method)    at Microsoft.Exchange.Services.OData.Web.RequestBroker.<>c__DisplayClass2_0.<Execute>b__0()    at Microsoft.Exchange.Services.Diagnostics.ServicesPerformanceTracker.RunOperationWithTrackingADAndRpcPerformance(Action method  Enum adCount  Enum adLatency  Enum rpcCount  Enum rpcLatency)    at Microsoft.Exchange.Services.OData.Web.RequestBroker.Execute(ODataRequest request)    at Microsoft.Exchange.Services.OData.Web.RequestBroker.Dispatch(HttpContextBase httpContext  AsyncCallback asyncCallback  CheckpointTracker checkpointTracker  ServiceModel serviceModel  IComponentConfiguration`1 configuration);