Outlool 365 - Missing Favorites Feature

I started Oulook 365 this morning and some things changed since last night.  First, the Calendar/To-Do bar was missing -- easy fix.

However, my Favorites in the Folder pane are gone -- not just the Favorite links themselves, but there's nothing above my Mailbox.  I checked under View ->Layout -> Folder Pane and there's no Favorite option (far right):

However, in Outlook Online, the Favorites are there:

Has anyone else experienced this?

Wade