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Your SMTP and env settings are fine. This is a bug in the Add Expense screen: the "Send invite to user" button never asks the server to send an email.

In SelectUserOrGroup.tsx, both buttons use the same handler, and it always passes false:

const handleAddEmailClickFalse = useCallback(() => onAddEmailClick(false), [onAddEmailClick]);
// ...
<Button ... onClick={handleAddEmailClickFalse}>   // "Send invite" (should be true)
<Button ... onClick={handleAddEmailClickFalse}>   // "Add to Split Pro" (false is correct)

const handleAddEmailClickFalse = useCallback(() => onAddEmailClick(false), [onAddEmailClick])

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Answer selected by Lebannen74
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