Microsoft has resolved the issue overnight. Below is the statement from Microsoft:
We've finished the deployment of our fix and we've confirmed via monitoring and user reports that the issue has been mitigated. Users will be required to restart their applications for the changes to take effect. Please reference EX255650 for further details.
We’ve identified the root cause and are applying a fix, which will reach affected users over the next 3 to 4 hours. Users will need to restart the Outlook client to apply the fix after it's received. We expect to restore service to affected users by May 12, 2021, at 3:00 AM UTC.
All,
There is currently an issue with the latest Outlook desktop app update that is affecting users worldwide.
Title: We're looking into a potential problem affecting email content within Outlook User Impact: Users may be unable to view email message content within Outlook.
More info: Initial reports indicate that Outlook on the web is unaffected and users with access to Outlook on the web can view email messages there while we work on a solution.
Current status: We're investigating a potential issue affecting users' ability to view email message in Outlook. While the issue is currently being work on. For the workaround, please use the OWA (Outlook Web Access) or access outlook on a mobile device for the time being.
Please go to the M365 Service Health page in the Admin Center or https://twitter.com/MSFT365Status/status/1392208966231355392 for up-to-date information.
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