I've checked both Word and Outlook for the auto correct options, they are checked in both apps. Odd thing is certain common words will 'auto correct' as I'm typing, without the squiggly red lines showing up, but when I purposely misspell something, no red lines and when I hit spell check, it say in both apps that all spelling is correct.

I even tried 'repairing' Office by doing the 'repair' version of reinstalling, nothing changed.