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I have the new version of 365 for my Mac. The Contact list is greyed out. When I go to preferences/general there is no button that says to unhide all folders. There is something that I can check to show all mail account folders. Even when I check that the contact list is still greyed out. I need to figure out how to make one.
Hi,
Since the problem is related to outlook, I added the office-outlook-itpro tag.
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Hi @Drew Perry ,
Welcome to our forum!
Does this issue recently? If so, have you done any specific operations before that?
On the other hand, please check if you can create a new contact list via File>New>Contact List:
Hi @Drew Perry ,
It has been a while and I am writing to see how things are going on with this issue. If you have any further updates on this issue, please feel free to post back.
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I have this problem as well. The menu options that are shown are from a previous version of Outlook for Mac. Under the Office 365 subscription, Outlook version 16.66.2, this is what the menu option looks like. 
Since migrating to this new version of Outlook for Mac, I have never had the ability to create a contact list.
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I have the same problem and have not found the answer (1/24/23). Very frustrating as this is a key feature needed to work with groups/teams.
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Is there an update? This seems so basic for an email program!
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Hello all. I am also having this same issue and cannot seem to find a solution. Does anyone have an update? Groups are essential to being efficient!
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Microsoft keeps saying this will be enabled. I've been waiting this entire year, since I was forced to use the new version of Outlook. This is a basic need for any email client. There is no reason that I can see why it is still not available.