Policy
Specify default quality of compression done on inlined images inserted in Outlook
This policy setting allows you to specify default quality of compression done on inlined images in Outlook. If you enable this policy setting, Outlook would compress the inlined images in the message as per the specified quality. If you disable or don't configure this policy setting, inlined images would be compressed at the default quality (220 dpi). Note: This policy setting only applies to subscription versions of Office, such as Microsoft 365 Apps for enterprise.
8039bc9cd3db L_DefaultCompressionQualityForInlinedImagesInOutlook Registry
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HKCU\software\policies\microsoft\office\16.0\common\mailsettings\oulookimagedpiindex Policy notes
This policy setting allows you to specify default quality of compression done on inlined images in Outlook. If you enable this policy setting, Outlook would compress the inlined images in the message as per the specified quality. If you disable or don't configure this policy setting, inlined images would be compressed at the default quality (220 dpi). Note: This policy setting only applies to subscription versions of Office, such as Microsoft 365 Apps for enterprise.