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I've seen that error appear when authentication is required in order to be able to utilize the relay - the peer (your smtp server) is looking to receive data from the request that it's not obtaining. Have you verified with your IT team whether you need to utilize the relay with an authentication requirement? When you select an authentication method, it should also autofill your port. The two choices:
Can you please type the hostname/IP of the SMTP server in the Email SMTP and see if it works?
Before that, the communication should be enabled from your Alteryx server to the SMTP server (If you are running your workflow from Gallery). If you are trying to execute it locally, then the communication should be enabled as well.
How do I test my SMTP server?
Type cmd in the Start menu search field and select Command Prompt from the results.
At the command prompt enter telnet <mail server address> 25.
Check the response.
Let me know if this helps and please mark it as a solution if so.