Email format is wrongly shown in Outlook.

@michaelag are you using any HTML template for capturing Dynamic Data, and does it contains some HTML designing?

Generally when you use Outlook desktop App, then it's common, even when you attach a graphical signature, sometime even that won't appear properly due to lack of UI Css internally, but works well while using through web browsers

@aloks176 : In Message body -> In Use a text or HTML template -> uploaded a text template.

@michaelag can you once try doing the same by uploading a HTML template instead of Text.

I can understand that your requirement might be different but onec have a try on creating a HTML Template having same type structure as Text and then try passing Dynamic Data into it, and try checking on Web as well as Outlook, so that we can come to a Conclusion, whether it's an issue of Template or Something else.