I have several users at my company experiencing this issue. Whenever they type out a network path (\\server\folder\) it does not automatically format the path as a link. What is especially strange about this behavior is that URLs DO format as a hyperlink, it's only network paths that aren't responding.

-Behavior is mirrored in MS Word
-Restarted Outlook
-Restarted PC
-Verified that "Internet and network paths with hyperlinks" is checked in both "AutoFormat" and "AutoFormat As You Type"
-Tried running Outlook in safe mode