Microsoft has officially acknowledged a search malfunction in the classic version of Outlook for Microsoft 365. The issue specifically affects the Server Assisted Search feature, which relies on cloud services to retrieve mailbox content when the application is running in online mode.

The glitch prevents search results from updating after users move emails between folders, mark them as read or unread, or apply categories. If a user attempts to open an email that was moved after a search, Outlook displays an error message instead of reflecting the current location of the item.

The company has escalated the issue to the Outlook development team and classified it as a hotfix priority. While the status is currently listed as under repair, Microsoft has not provided a specific timeline for when a permanent fix will be released to users.

As a temporary workaround, Microsoft suggests disabling the Server Assisted Search feature. This action forces the classic Outlook client to revert to the older Windows Desktop Search mechanism. Users can implement this by modifying the registry settings for their account.