I switched my forwarding address route from rackspace to gmail and now Cloudflare email routing works. I read lots of upstream error posts and none of them have a definitive resolution however multiple threads recommend gmail as the destination address. I have several other forwarding accounts with other providers going to rackspace email and never have had any issues. Coincidentally, I have gmail routing back to rackspace since Cloudflare was unable to. This feature is in beta so maybe Cloudflare is still working out the kinks.