Select a picture.
Activate the Picture Format tab of the ribbon.
In the Adjust group, click the Color drop-down.
You should find 'Set Transparent Color' near the bottom:
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There used to be a great tool in old versions of PowerPoint that you could add to the toolbar which allowed you to select an imported picture and eliminate the white background pixels. It was called "Set Transparent Color." I cannot find it anywhere now though several "help" sites I visited told me various places to look for it. I was unable to find it.
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It looks like you have the 'Design' tab active? Try clicking 'Picture Format'
Aha! Thank you! That was the problem. After years of using older versions of PowerPoint, I am finally learning how to navigate in 365! I really liked the old way of being able to drag a tool up to the tool bar and couldn't figure out how to accomplish this. It was always a little hard to figure out even back then!