I installed the CRM 2016 outlook client, and found same error which I faced with CRM 2013 on Windows 8.2 with Office 2010 long time ago. Now this issue came from Office 2013 with Dynamics CRM 2016 Online.
I thought to keep save with my post for future reference.
There is an official Microsoft KB article explaining a registry update that should take care of the issue. The trouble for me was that I didn’t have the’ 2.4’ folder as specified in the KB.
I checked MS office registry references, those are not in use. You will find multiple folders in this particular registry path, I saw 2.6 and 2.7 for Office 2013 (these are also okay for Office 2016) and 2.8 for Office 2016. I don’t have office 2016 installed on my machine and folder was empty. So I deleted the 2.8 folder and restarted outlook. That worked for me.
The KB should probably need to be updated as this is outdated with recent releases.
Office 2013, Dynamics CRM 2016 Online, Windows 10 Professional
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