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Before moving on, I would like to confirm if you experienced this issue in Outlook client or Outlook Web App.
Generally speaking, if the URL in the email cannot be recognized as a standard safe URL, this URL will be blocked in Outlook Web App. This kind of behavior is not a configurable feature in Office 365. For all the URLs that can be recognized, like the URL you mentioned, it will be fine to open in Outlook Web App.
Based on the situation you are experiencing, is there specific pattern of this kind of broken URL, like from specific domains/users, some signatures, some auto-generated emails? In addition, could you try to send other URLs to this recipient for testing to see if the issue occur again?
If it is an Outlook connection issue, please check the system requirements can be met and the required DNS records can be set correctly. Is there any other person experiencing a similar issue on your organization?
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How are things going? Is there any update on the status of the issue?
My Office 365 Exchange service is having the same issue. It is not happening on all email accounts, just one of them.
One user can not open any hyperlinks on her desktop version of Outlook, but can open the same hyperlinks in the OWA interface.
I have tried all types of settings. deleting the mail account from her PC, adding it back and she is still not able to open these links. Since she has to open many links each week for work, it severely limits the usefulness of having Exchange 365.
I talked with a support person over the phone, but they had no idea what I was talking about and their non-understanding made my blood pressure skyrocket!
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Hello, Grace. The same issue just developed on my desktop version of Outlook 2010. The modal warning box reads, "This operation has been canceled due to restrictions in effect on this computer. Please contact your system administrator." This issue occurs on every hyperlink in every email. It does not occur if I access my email through Outlook Web App. It occurs even if I click on a hyperlink to another email address on my domain. The issue started within the past week. I have Plan E1 and Microsoft Office Professional Plus subscriptions.