Kevin,
I see why you're confused about Outlook. The Legacy mode on Macs supports client-side rules for IMAP, but recent updates are removing this feature as Microsoft shifts to the new Outlook. This version doesn't support IMAP rules.
Can you switch back to Legacy mode and check if it’s active? See if a basic rule works, like moving emails from one sender to a folder. If it doesn't, manage rules on your email server (if possible) or use the new Outlook without IMAP rules.