seems to be fixed now:
if smtphost and smtphost.lower() == 'master.debian.org':
ui.long_message('*** Warning: master.debian.org is no longer an
appropriate smtphost setting for reportbug; please update your .reportbugrc
file.\n')
smtphost = 'bugs.debian.org'
** Changed in: reportbug (Ubuntu)
Status: Confirmed => Fix Released
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reportbug uses debian smtp server which fails to relay
https://bugs.launchpad.net/bugs/44116
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