The Outlook team has discovered an issue when you try to upgrade to the “Free” Outlook in the App Store from Outlook 2016 you might receive an error and get stuck in an offline mode, unable to switch to the new Outlook or revert to the 2016 version.
In order to switch back, you will need to revert back to Legacy Outlook, export local folders (aka On My Computer folders) to an archive file, reinstall Outlook 2016, and import the archive file.
Revert to Legacy Outlook
If you are using the New Outlook for Mac, you will need to revert to Legacy Outlook prior to exporting your local files.
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Click the Help menu.
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Select Revert to Legacy Outlook.
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After reverting to Legacy Outlook, if you are asked to Try the New Outlook, select Not Now.
Export local folders
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In Outlook, select Tools, then Accounts.
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Select the minus - button and remove all accounts.
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Select File, then Export. Check all of the item types listed, then select Continue.
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Save the archive file somewhere you can easily find it.
Reinstall Outlook 2016
After your archive file is saved and your data is exported, you will need to delete and re-download Outlook.
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Control-click the Outlook icon and select Move to Trash.
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Download Outlook 2016:
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Install Outlook 2016.
Before you try to open Outlook 2016 again, you will need to do the following:
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Select Go, then Library.
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Expand the Group Containers folder, then delete any folders that start with UBF.
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You should now be able to open Outlook 2016.
For more information on how to go directly to a specific folder, please see Go directly to a specific folder on Mac.
Import archive file
It's now time to import your previously saved archive file.
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From Outlook, select File, then Import.
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Select Outlook for Mac archive file (.olm).
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Find your archive file and select Import. Your data should now be imported.
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You will need to activate Outlook and Office using the account associated with your 2016 license and add back any missing accounts.
Learn more about how to Activate Office.