Failed to send email with "Authenticated user is not authorized to send mail"

Problem statement

Emails are failing with error “Authenticated user is not authorized to send mail”

Symptoms

Log:

{
   ...
  "type": "fn",
  ...
  "details": {
   ...
    "error": "Authenticated user is not authorized to send mail"
  },
  ...
}

Cause

If you have Sendgrid (Twilio) then it is related to Error 60604.

Solution

Change your API key or update its permissions: