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Outlook 2016 read emails turn into unread email?

Just updated a clients office to Outlook 2016.  They use secure email from Godaddy aka webmail.

 

For some reason whenever an email is sent it shows up in "Sent Items" as unread.  If a previously read email is moved from one folder to another it now becomes unread.

 

Why is this happening? 

 

Customer service is pointing to the Outlook client and stops support there.

 

Seams to be a server side problem to me.

 

Are others having the same issue? 

 

Has anyone solved it?