Can't SMS inbound or outbound.
Configuration Manager User Extensions with SMS (X2 license and above, Lobby and Basic do not have SMS)
A local number needs to be assigned as the first number chosen in Configuration Manager, and then you can assign the Toll Free number.
If you notice the Toll Free number is assigned first simply copy it to a note pad, delete the toll free number and save, then add it back and save.
If the Toll Free number is the first number assigned, SMS will not work.