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Ahhh.. the irony!
As admin I have logged in with my Microsoft account and Windows Build 10240 universal Mail app connects seamlessly to my exchange server.
Same account Outlook 2016 has difficulties as already stated above by numerous posters on autodiscover function even though this is enabled.
Solution was to create another account with my local login (not the Microsoft login) and then connect to Outlook 2016.
Worked but if I have to use Outlook 2016 then I need to go to subordinate account. Outlook 2016 will still not connect to my main account...
Brgds