Pretty stupid of your university to give you this address. Sure it's technically valid, but they know perfectly well it will be refused almost everywhere, and even when not explicitly refused, it will cause bugs. Being technically correct is useless if you're the only one doing it.
Yes, it was I guess that was a bug I'm the student name to email generator. They quickly provided me a convenient alias but I was still able to receive mail at the address with the apostrophe, and it was cool. Having an apostrophe in my name still triggers a surprising numbers of bugs to this day...