Using the New Outlook for Mac features in business environments
This was annoying me tremendously for the last few months. I just figured it out. When you want a new line in your signature, do not press Enter (for Windows PC) or Return (for Mac). Instead, press Shift+Enter (for Windows PC) or Shift+Return (for Mac). This will also create a new line but for some reason this eliminates the extra space when pasting the signature into an email. Weirdly, as others noticed, pressing Enter or Return will not show extra space in the signature editor, but will add the space when adding the signature to the email. It does not make any sense. Signatures are so common and it's strange that a supposedly good company like Microsoft would have such an idiotic bug in the system.