Today I rolled back my Laptop to Windows 8.1 factory image from DELL. All my contacts are back with their photos. Email is syncing without any issues. (Cannot see contact photos where linkedin integration is done) (I all the time get "Not up to date" error message on phone and on Windows 10 laptop, when tapped it shows 80070490 error code)
Its clear now that
1. People app and Mail app on Windows 10 has issue.
2. The recent update on Windows Phone 8.1 has same bugs that Windows 10 app is experiencing.
3. I rolled back my Laptop to 8.1 and people app and Mail app are working without any issues, showing all the contact photos that are synced with linkedin.
4. I dont know how to roll back recent update received on Windows phone 8.1 that will fix the issue. It all started 2 weeks back when outlook.com servers had outage on 23rd Sep to 8 Oct.