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Can't change primary SMTP address

I am trying to change the primary SMTP address. I have multiple domains on the exchange server and would like to change the primary from domain1.com to domain2.com. I have updated the recipient policy to do this and checked the changes have propagated. But when I try to send an email I get the following NDR:
    There was a SMTP communication problem with the recipient's email server.  Please contact your system administrator.
            <server.domain.local #5.5.0 smtp;550 <user@domain2.com>... Not permitted>

If I change it back to the original domain, mail sends again.

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8/22/2022 - Mon