Scope of impact
Microsoft is currently working on an issue which is effecting searching in Outlook, users are seeing the following error below when performing a search
"It looks like there's a problem with your internet connection, let's look on your computer instead"
Searching does seem to work fine via Webmail
We have no ETA on when Microsoft will resolve this issue but they have provided us with the following update
Users may experience search failures in the Outlook desktop client.
Title: Many users will see searches failing in the Outlook desktop client User Impact: Users may experience search failures in the Outlook desktop client.
Users' searches will default to a local search, they will be unable to search the Exchange Online service. This issue is only affecting on-premises users using non-Modern authentication. Users who have access to Outlook on the web may be able to use that protocol as an alternative method to search the service.
We've determined that an issue in the authentication process is misrouting search requests, causing some requests to fail. We're developing a fix and will run it in our test environment to ensure it doesn't cause any further issues. Once we've validated in our test environment, we'll begin the deployment to the affected infrastructure.
Scope of impact:
This issue may potentially affect any of your users attempting to search in their Outlook desktop clients.
An issue in the authentication process is misrouting search requests, causing some requests to fail.