Using New Outlook on Windows for personal email, calendar, and contact management
Hi....In short, nothing has been resolved.
Microsoft are well aware of the problem, but have not provided a fix in over 12 months.
I personally spent hours on the phone with their technical team last year, and at one point it looked like they found a fix, but at best it only restored about 50% of categories, and only for a small group of people.
That was August 2024.
Since then, nothing has happened.
As of February, which was my last interaction with them, they are apparently pushing an update to outlook (web and app version) in June/July of this year. Apparently this will add a host of new features, including the ability to manage categories more efficiently.
Whether this will fix the underlying issue remains to be seen.
Until then, assume that categories is well and truly broken, and is virtually unuseable.
Sorry.