Anybody else having this Outlook365 encryption issue

Yesterday I got a few tickets about people unable to email encrypted emails. I assumed it was part of the 365 outage issue. But today those people still can't encrypt.

What we found out was it the user did "FILE > ENCRYPT" the user on the other end would essentially get "you don't have permission to view this email"

But if the user does "Options > Encrypt" it worked just fine.

Anybody else seeing this problem?