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Oh ok, I get it now. I can see why you're aggravated. If you do a search in the people in the to-do bar or the little hoverbox over the button to switch to contact view, you can't double click on it anymore. I can't find an option in Outlook to change that either. So weird. Although I'm able to open the contact for edit via double clicking if I switch to the contacts view and search for it that way. Extra click to search, I know, but that's what I've been used to doing.

I have the latest version of Outlook on an Office 365 for Business subscription as well. When I search/open a contact, it opens it up just fine. Maybe you're seeing what is normally the popup bubble in the viewing pane? If you click the three dots under the name in the header, it should give you an option for "edit outlook contact". Does that help?