Using older versions of Outlook for Mac for personal email and calendar
Thanks, I've Contacted Support. They've confirmed that it is a bug that they are going to patch but couldn't give a timeline for that.
Having said that, the simplest work around they had was: "Click 'Outlook -> Work Offline. Once done try sending a test email with an attachment to yourself. Once the email is stuck in Outbox, set Outlook to online mode and see if the email is sent with the attachment."
This worked and seems to also work for sending emails to people other than myself.