Hemant,

This logic hasn't changed for years. However, it is possible that your Xeams were configured differently causing it to work earlier. Here is what happens when you use the SMTP Proxy server for inbound email. (I assume you're using the Proxy. If not, let me know).

• When using Proxy, the destination port is specified in Proxy configuration rather than hosts.txt file
• Xeams adds a temporary header in every message containing the host name and port, eliminating the need for hosts.txt. This logic works fine for incoming emails.
• However, emails that are generated by Xeams, such as Quarantine Reports, do not contain this header. Therefore, they end up performing MX Lookups, which works fine if your DNS points to the IP address where Proxy is listening. In other words, such messages will go out and come back in.
• If your configuration is modified somehow in a way that prevents messages from going out and coming back in, that will make the quarantine reports sit in the queue. The only way to fix that is to specify the port and IP in hosts.txt, which eliminates the need for MX lookups.