Using New Outlook on Windows for professional communication and productivity
Following Carlos986's suggestion fixed part of my problem. I am now able to right click and find the suggested correction if I popup the email in a new window. However, for the main window, it still doesn't work. But at least I have some workaround. Thanks!
I am also wondering if this is because my organization is managing some of the options in the setting. I only see the choice of "Turn on optional connected experiences" but not the "Turn on experiences that download online content" option.