Hi Simon,
Thanks for your reply. Currently, Office SSO environment can’t provide the Outlook client credential during the Outlook launch. This is because Office365 and local AD are the different organizations. If you have any questions or have additional information to add to your previous suggestion, I would suggest you submit feedback at mymfe.microsoft.com/.../Feedback.aspx.
In a general SSO environment (not Office365 SSO), the AD and Exchange service are in the same forest/domain.
Thanks,
Neo Zhu