com.sun.mail.smtp.SMTPAddressFailedException: 504 5.5.2 <serverhostname>: Helo command rejected: need fully-qualified hostname
It appears that app is sending <serverhostname> not the fully qualified FQDN.
Release : 16.0.1
Test with Powershell > Send-MailMessage on a working vs nonworking environment.
If the same error, this rules out Clarity as the issue and requires support from the customer network/mail server team.
Have them review the mail server error logs and find out if HELO checking needs to be disabled.