Thank you so much David! This works perfectly. Right after you paste text, a small "Ctrl" icon box will pop up below the text you pasted.

Once you click on the "Ctrl" icon, the below icon will appear. Clicking on the first box saves formatting.

I still believe the new Outlook should be updated to save formatting automatically when pasting.
omg I HAVE THE SOLUTION!!!!!
When you copy and then paste, at the bottom of the pasted material there is a very tiny box. Hover over that and choose the left (1st of 3) icon. It's a clipboard icon and it says (Ctrl).
My coworker showed me this and IT WORKED!!