So sending the test email works but the actual notifications are not? Can you confirm these do not end up in spam?
You don't seem to be using a queue driver, that would usually be the issue when the test does work.
Does creating an account on your community cause an error or does that succeed? If it errors then something is wrong with the email configuration, if it succeeds but no email is delivered then it might be marked as spam (DKIM, SPIF or other higher level email setup settings).