Do you know WHY it's like that? "New" Outlook is literally just a headless instance Edge running 365 OWA. It's a fucking web browser. That's why it can't access your network drives, that's why there's no extensions, that's why it needs to be online and treats every link as HTTPs. Because there's perilously few actual SOFTWARE developers at Microsoft anymore. It's all barely trained dime a dozen (and likely pajeet) "webdevs" who couldn't code their way out of a hello world tutorial.
I'm fairly certain Teams is the same way and the Office apps already are or will be made to be so as well.