Using older versions of Outlook for Mac in business environments
I'm surely sorry to hear that IMAP Idle wasn't a resolution to your issues, and trying Apple's Mail app might be a useful alternative (even if not ideal).
I've hung in there with MS Office 365 including Outlook for now, though my "Mailbox already exists" errors went away when I down-sized my InBox. I haven't seen the problem for many months, though experience tells me that Outlook - even when run on a Windows environment - has "quirks" when the Mailbox files becomes (for Microsoft) oversized.
My reasoning for trying to make Outlook work - beyond liking the categories and views it provides across multiple devices (Mac, iPad and iPhone) has been it's better ability to handle meeting invites. I have found it better at that task than Mail on my Mac, or BusyCal. And since I keep the family's itinerary via my calendar, it remains a critical feature for me.
A downside has definitely been receiving invites from others (e.g., Gmail .ics invites or 3rd party subscribed calendars) which automatically associate with Apple's Calendar app, not Outlook. I have never found a way aroudn this, beyond having the sender re-do the invite to my outlook.com address (whichI don't advertise or use for emailing).
I'll be very interested to hear how your conversion to Apple's Mail and Calendar apps works out for you. For now, it also represents my fall-back position, for that time in the future when the "Mailbox already exists" issue resurfaces for me.
Doug