Exchange and autodiscovery are working well, you can tell as the correct server entries appear in the internal/external server fields in the account settings.
The problem is that after the initial account setup mail defaults to the internal server address. You can see this happening from the activerty window.
It is correct the update the settings each time you run mail, this helps if admins have to make changes to the exchange system and is in fact the way it should work. However, an override would be helpful.
The problem is mail defaults to the interal sever address, which should be fine if you sit on the internal network and can access the subnet that the autodiscover settings allude to. If you operate externally or have a commercially hosted exchange service you will be unable to ever reach the internal server.
Mail is failing to recognise that you need to use the external server address which works fine. The host file edit with fix that issue but is a workaround and not a fix.
Other problems - folders and connectivity thy are being mentioned in this thread wil relate to the performance of EWS - most likely!
Hope it helps, big thanks to the community really great to see the involvement from you all!