Organizing and accessing contact information in Outlook.com
I have the same problem; several of my email groups send messages to deleted members. When I inspect the membership in People they do not show up, nor do they display if I expand the group (by clicking the plus sign) in the address boxes of a message. When I send to the unexpanded list, it send the message to the deleted members. Having to expand the list every time I send a message is a real nuisance, not a solution.
Searching the web I found several articles about .NK2 files for the Office version of Outlook. These files support an auto-complete feature when typing addresses. There were some reports of phantom addresses that were due to them being retained in this address cache. One solution was to delete the cache and let Outlook rebuild it. Is something similar going on here? If so, how do I reset my cache?
Directing messages to the correct recipients is pretty fundamental to a mail system. This bug needs to be acknowledged and fixed. I'm already displeased by being forced out of hotmail which I used without issues for years. This bug is strike two and makes me a very unhappy customer.