Hello,
A few questions to help try to determine what might be happening.
Does the Microsoft 365 Email module work in any other scenario you have?
Is the ArcGIS Field Maps watch feature module running after a point is added to the layer? In the scenario editor when you are testing, can you see the returned data?
What does your scenario look like? Do you have other modules other than the Watch Features and MS 365 Email?
In the scenario below, I am sending an email for each feature that is deleted from a layer
The iterator, loops over the deleted features
And the MS 365 Email module is configured like below