Organizing and accessing contact information in Outlook.com
your logic makes sense, but 1, it appears i have it set to default to my email, which on the phone is outlook. 2, it used to work and then stopped without my changing anything.
assumption has always been it's update related and i just deal with it and try to enter info on my desktop.
an interesting detail that i'm not sure i realized. if the contact already exists, most likely created on computer and i edit it on iphone, then it updates everywhere. Just like a new or updated entry on computer. it's only new contacts on phone that don't sync.
go figure. thanks.