Just adding my voice to this issue. I have already manually set every setting available within Outlook to automatically add my default reminder to every calendar event on my account, and yet Outlook itself does not do this for me despite the settings being set to do it. This makes the setting misleading and confusing and it makes me angry that the product doesn't work the way it should and the way I need it to work for me.
If the automatic reminder is to be set by the sender of a meeting, then I don't need a setting on my side that claims it will do this for me. If I have a setting on my side that says it will do this for me, then I expect it to do just that, and it doesn't.
So regardless of what another company's product does or doesn't do, Microsoft's product does not do what it says it does and what its users tell it to do. That is a bug, even if the bug is just miswording what that setting is supposed to do.
Microsoft, please fix. Outlook has had calendars with reminders for decades. It's well past time for this functionality to be in the product. Thank you.