Microsoft (Outlook.com and Outlook Enterprise) has ceased issuing DMARC reports. We observed an 85% reduction from the 22nd of February and a further 99% decrease from the 23rd. As of yesterday, we haven't processed any reports from them.

It seems Microsoft is dispatching DMARC reports, but there's an issue with their SMTP transmission.

Rather than using the standard format
MAIL FROM: <[email protected]>

they are including additional attributes:
MAIL FROM: <[email protected]> XATTRDIRECT=Originating XATTRORGID=xorgid:<GUID>

resulting in a syntax error, causing the emails not to get delivered and processed.

@freddieleeman you probably now need an E5 license to receive the reports
Microsoft DMARC aggregate report SMTP issues

Since 2024-02-24 06:46:45 UTC, we've stopped processing Microsoft's DMARC reports. An investigation revealed that the issue stems from Microsoft's..

TECHCOMMUNITY.MICROSOFT.COM

@freddieleeman They also don't "Reject" properly. If your domain is set to dmarc=reject, and your Office 365 policy is set to "honour dmarc reject", every time I send you a spoofed email from yourself you will receive a bounce message with the malicious email attached.

MS Security confirmed WONTFIX. It's a form of filter bypass because even content that would be blocked by malware detection now lands in your inbox.