Hello,
For personal Outlook.com, there are two separate things that often get mixed up:
Block list behavior: blocked senders and domains should route mail to Junk
Rules behavior: rules do not run on items already delivered to Junk
Outlook.com junk filtering happens ahead of rules, and rules only apply to mail delivered to the Inbox, not the Junk folder unfortunately, just as you already discovered.
Junk folder actually does work like the Deleted items folder. Emails in those folders are deleted permanently 30 days later automatically.
I am sorry, I wish I could give you a better answer, but this is quite a limitation by design.