This appears to be a fairly widespread and extremely annoying issue.
The issue only seems to appear when using the combination of the Outlook 2016 client on Windows 10 connected to Office 365 back-end servers.
The problem did not exist before my outlook.com profile was migrated to o365. So, this tells me a bug was introduced (or perhaps re-introduced) into the Office 365 environment.
Does anyone else have this issue?
There is a thread going on over on TechNet on this issue and it is getting no attention from Microsoft.