Outgoing email failure using O365 with error "Exception:SendAsDeniedException."

Outgoing email failure using O365 with error "Exception:SendAsDeniedException."

Outgoing email fails with an error when using Office 365 mail server. Error found in the logs 
"Exception:SendAsDeniedException.MapiExceptionSendAsDenied; Failed to process message due to a permanent exception with message Cannot submit message. 16.55847:85150000, "
This mostly happen when the clutter feature is enabled for the mail user. 
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