Another approach to try what hopefully helps, assuming what you've said, settings should be ok.
Start your system in safe mode, see Paragraph "Start up in safe mode":
Use safe mode to isolate issues with your Mac - Apple Support
We only use safe mode for clearing caches so after login, wait a minute or so then reboot normally.
After normal startup, start Mail and don't select any mailbox while mail gets (or not) new messages. Check Mail activity, choose Window > Activity, then watch the progress if there is any. When there is no more activity, we goto next step.
Leave Activity Window open, it will stay on top, you can drag it around if needed. Select your mailbox in the Mail sidebar, then choose Mailbox > Rebuild.
When rebuilding you Exchange account, messages and attachments stored on your computer are discarded, and then downloaded again from the mail server to your Mac. Your mailbox appears empty until the download is complete. Only look at the Activity Window and leave 'mail alone' until there is no more activity. If this works out, you should have working mail again.