Hi Melissa
Thank you for posting your question in the Microsoft Q&A forum.
Based on your description, I also tested this in my own environment (Outlook 16.105.2 on macOS Sequoia 15.7.1) and I still observed the expected behavior. However, I also found these discussions from other users who reported experiencing the same behavior as you:
Why is my email signature in outlook App (on Mac) suddenly adding my email signature icons as attac…
Why is my email signature in outlook App (on iMac) suddenly adding my email signature icons as atta…
According to those discussions, the closest solution identified was updating to the latest version. Since you are already using 16.105.2, which is the newest release, the best way to help the engineering team recognize the issue and fix it quickly is to raise feedback directly in Outlook by going to Help > Feedback.
If this issue only started occurring after you updated to the new version, you might consider rolling back to a previously stable build as a workaround (Update history for Office for Mac - Office release notes | Microsoft Learn).
In addition, you can try Resetting the Account in New Outlook to rule out any local profile or sync issues.
Open Outlook > Tools > Accounts > Select the account having issues >Click on the ... (three dots) or the Gear icon depending on your version > Select Reset Account
Please understand that this is a user‑to‑user support forum, so I’m sharing recommendations based on my own research and Microsoft’s published documentation and I hope this information is helpful.
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