We are also experiencing same issue. Using O365 account E3 license and downloading Office software from account. Microsoft® Outlook® for Microsoft 365 MSO (Version 2405 Build 16.0.17628.20006) 64-bit
When selecting update it says I am at the latest version. I've done some testing and issue is happening to our whole domain. We can open encrypted email fine using webmail and the new outlook app, but using the normal outlook it gives us link to click on to open through webmail. It no longer opens automatically the encrypted email in regular Outlook.
Anyone find a fix yet?
*update* After much testing found that because Microsoft is forcing everyone to start using MFA. The fix to get the regular/classic Outlook to open encrypted emails automatically like before is I had to join the computer to Microsoft Entra ID formerly known as AzureAD. It has something to do with authentication and/or MFA.