My problem (sending verification emails to new registrants from my Godaddy-hosted Forum) disappeared but the root cause is still unknown - I suspect something may have gone awry with Godaddy's email address blocking scheme.
I did get another clarification from Godaddy tech support...
Any email generated from a Godaddy server cannot specify @yahoo.com, @gmail.com, or @aol.com as a FROM address. They are undoubtedly doing this to prevent spoofing which is understandable and perfectly OK with me. However, this was not the issue in my case as I was using a godaddy email address (associated with my site's domain) as the FROM address.
Still, other YAF deployments might run into this issue, so...
If you are running YAF through a Godaddy-hosted site, make sure that the forum email address is set to a non-blocked domain; e.g.
admin@yourgodaddyhosteddomain.whatever. Do not use a yahoo, gmail, or aol email account as your forum's administrative email address.
Again, this was not the issue for me but the problem did mysteriously clear up after logging a case with Godaddy support

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I have made no changes to my YAF setup and verification emails for new registrants are now working perfectly.