I have tried going into outlook, email options, advanced email options,
and unchecking/checking "Show an envelope icon in the notification
area" and this doesn't work.

I have tried right clicking the taskbar, then checking "Hide inactive
icons" Then customize, and found "You have new unopened items and
changed it to "Hide when inactive", and "Always show" to no avail.

I have tried reinstalling outlook to no avail.

I do notice that under the Customize Notifications for the taskbar,
where there should be an envelope icon next to "You have new unopened
items" there is just a folder. Any suggestions on getting this
function working again.

Fixed. Had to rebuild the windows profile.