There is this official Microsoft instruction: Turn off picture compression in [...] Outlook for Microsoft 365 saying:
Turn off compression in Outlook
The option to turn off picture compression in Outlook is available only after you have added a picture to an email message as an attachment.
1. In the email message to which you have attached a picture, click File > Info.
2. Under Image Attachments at the top, select Do not resize images.
This does not work and never has, at least not for (large) inline images. Such images are still resampled AND recompressed.
Then there is this advice on these forums:
- If you copy/paste a .png image that has 32 bit depth, there will be no issues. As people reply to the e-mail, the image will remain as .png and the quality will not deteriorate in any way
This ALSO does not work, at least not for large inline images. Any image larger than 1672 pixels in any direction will be resampled to become 1672px wide and/or high, thereby deteriorating the image quality.
How can this finally be resolved?
It is unbelievable that millions of business Outlook users have had to put up with that embarrassingly bad and unprofessional quality of screenshots and similar images in emails, for decades.