Maria,
Then this must be an issue with
Moodle Cloud. The upload settings you have are the right ones, so this is very likely an issue with the cron.
You can check on the task for this in Site administration >
Server > Scheduled tasks, and then do a browser search of that page for "Send new user passwords" to find the task \core\task\send_new_user_passwords_task. It should be enabled and set to run ASAP (which actually means every time cron runs.)
I am not sure how Moodle Cloud works these days or whether you can see that setting. I think this is an issue for their support.
You can be pretty sure it is cron with the following test:
- Create a user manually in Site admin > Users > Accounts > Add a new user, and set it to send them a password with the "Generate password and notify user" setting.
If this works, it means that the email system is working. This is because manually creating one user does not use the cron process, it just immediately sends the email out.
On the other hand, the Upload user process works differently. It places the accounts to create with new passwords in a queue and then that Scheduled task checks that queue and emails any new items out the next time cron runs the task.
You could test this by creating two test users sending to known working email addresses.
