Email Alerts to Registered Users Failing

Email Alerts to Registered Users Failing

After failing to get a response from my ticket submission and my email to support, I'm hoping someone on this forum might be able to help:

I am trying to recreate a workflow similar to that described in the online documentation.  My scenario is as follows:  

Record Type:

Potentials

Execute On:

Edit (First Time)

Rule Criteria:

[Stage] is set to “Closed Won”

Instant Action:

Send alert email to registered (active ZOHO users) that includes details of the win

Instant Action:

Update [Close Date] field

When executing the rule, however, the selected registered and active ZOHO recipients (including Users, Roles, Groups, etc.) do not receive the email.  Oddly enough, though, the “additional” recipients (those external to ZOHO) do receive it .  See attached screen shot.

Other email-based actions (notifications) work just fine, so the issue is not invalid ZOHO User accounts/email addresses.

Incidentally, the Instant Action: Update [Close Date] field works just fine as well.

Can anyone advise how to fix this?  I’m on a deadline and need to have this resolved.