It's not possible to update from Outlook Win32 to Monarch on Azure Virtual Desktop. For the intended purposes using the OWA client doesn't resolve.
Once you toggle the pop up displays it's down...
Same problem here.
I first thought we have to update to the newest FSLogix version, since that includes support for Appx installs. After updating the problem still occurs.
I noticed that on some AVD farms I am able to open the new Outlook "OutlookForWindows". But after signing off from Windows and logging back in it reverts to the classic Outlook.
Hopefully it's just a early-preview thing.