There is mixing of locations going on here. The Settings, System, Display Pane, Scale and Layout section is where this is found under Windows 10 (or at least most easily and directly). If you literally cannot see the safest thing is to leave scaling at 100%, which is what's recommended.
There can be all kinds of odd offshoots from having text scaled above 100%, though I have no idea if the "Presence Unknown" bit is one of them.
As to sorting contacts in Outlook 2016, it can be done in the same way it always has been done. I sort my contacts on the "File As" field because I want them to sort in Last Name, First Name order. Any column can be selected and then an ascending or descending sort applied.
Brian - Windows 10 Pro, 64-Bit, Version 1909, Build 18363
Tolerance is the positive and cordial effort to understand another's beliefs, practices, and habits without necessarily sharing or accepting them.
~ Joshua Liebman