If you are having issues creating a new mail profile, when setting up an Office 365 mailbox, the steps below should resolve the problem.
First create a blank profile.
Open Control Panel
Go to Mail (Microsoft Outlook)
Click on Show Profiles
Select Add and give profile a Name
Click OK and on the next prompt, click on Cancel:
On the next prompt, Select Ok and it will create a blank profile
Make sure the new profile is selected and applied as follows:
Now, when you open the Outlook app, make sure to click on Advanced options and select "Let me setup my account manually":
After this screen, select the account type as O365 and you can now follow the onscreen prompts for the setup.