JohnMajor2112 The People app currently only shows your Teams contacts. Outlook contact support is planned for a future client update. (This information was shared by Microsoft in one of the Teams Users Voice requests for Outlook contact integration.)
Regarding how the Favorites and new People app work in the latest client here's something I just posted in another thread:
- The April release added the Favorites list to the Calls page in the client and showed the contents of the actual Favorites contact group.
- Then the June release added the People app to the client
- This also changed the behavior of the Favorites view in the Calls app as it now lists the contents of the Speed Dial group for the user (and not the actual Favorites group, even though it still says FAVORITES at the top).
- The new People app can be used to view any of the contact groups, including Speed Dial or Favorites by selecting the drop-down menu.