This setting is NOT required if you use Office 365 hosted Exchange / Outlook
Outlook 2016 has been changed to presume by default that Exchange is either internal to the company domain or hosted by Microsoft themselves. Changing this setting can be done a variety of ways - the simplest is by importing a registry file which contains the setting.
The attached file can make this change. Simply download it, unzip it, and then double click the file to import it into your system. If you want to view the settings, you can view the file in Notepad.
The file contents for reference are:
Windows Registry Editor Version 5.00 [HKEY_CURRENT_USER\Software\Microsoft\Office\16.0\Outlook\AutoDiscover] "excludehttpsrootdomain"=dword:00000001
All Products
Exchange setup on Outlook 2016 / Office 365
Fix-Outlook-2016.zip
Registry Change Registry key to allow Outlook to accept 3rd party SSL certificates