We tried many of all the tips, and none of them have worked.
Could it be related to Standard user accounts vs Admin accounts?
We did a complete uninstall of Office and reinstalled it with a local admin user account.
When we add the Exchange account in the Outlook client in the admin user, the search was working.
We gave the local standard user admin rights and configured the Exchange account in the Outlook client. Search did not work.
We switched back to the admin account, the search stopped working too.
We restarted the computer.
We were about to give up, logged in the admin account, removed the Exchange account from the admin account, switched the other user back to the standard user rights, logged out of admin, we logged in the standard user, tried search
in Outlook one last time and was surprised that search was working!