Yes - gone. I can check with provider to see if it is possible to recover deleted items.
No deleted items tab in Accounts/More settings - only able to change folders for sent items. Not sure where I would find a radio button. No rules except a default rule to clear categories on mail.
Interestingly I also have Thunderbird client with the same webmail account set up as an IMAP account and everything works fine - deleted emails go to trash as usual!

So I reallly have no idea whats happened with Outlook especially as its been reinstalled!

For SpiderTech - not sure what OWA is - I use "ordinary" outlook as a client with my webmail set up with IMAP protocol