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I have reviewed this request as well as the associated PMR with engineering and agree that the product is working as expected. With the YPMValidateCouponUE enabled, if the UE returns that the coupon is valid, it is expected that either (a) the coupon exists in OMS (in which case the OOB coupon validation will be executed if the rule to perform default coupon validation is enabled) or that (b) the coupon does not exist in OMS, in which case it is expected that the YPMLoadCustomPricingRulesUE is implemented to provide the coupon details. Generally speaking, the YPMValidateCouponUE would be performing additional custom validations on the coupon against an external system, so in the case where the coupon does not exist, it would be determined within the UE and it could then return an invalid coupon.
If you have a scenario that does not fit into (a) or (b) above, then we would recommend the approach suggested in the PMR, and add a call to look up the coupon in OMS and have the UE return an invalid response if it does not exist.