Symptoms
Consider the following scenario:
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A user creates a meeting or an appointment on Outlook calendar with the Show As setting set to Out of Office.
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You have not signed out of or exited Skype for Business 2016 since the user set Out of Office on the calendar item.
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You view the user in your contacts list after the user's Out of Office status ended on Outlook calendar.
In this scenario, the presence note of the user still displays the Out of Office note as shown below:
Resolution
To fix this issue, install the April 4, 2017, update (KB3178717) for Skype for Business 2016.