However, if you are using Exchange 2016 (or newer) or hosted Exchange through Office 365, the ARCHIVE functionality has changed. Archive no longer creates a .PST, it only moves content to a single system folder cleverly named ARCHIVE.
A user can also not change the location to which your archived items are moved. The Archive folder is one of Outlook’s default system folders and cannot be renamed, moved, or deleted.
PST’s are notorious for becoming corrupt, especially as they grow, so you if you do have PST’s you should look a tool like SFWare PST Repair Tool.
Online Archive with O365 or Exchange 2016 or newer is a separate mail store system like a second account that the users never “sees” that is slower cheaper storage on the back end that is configured by administrative consoles on Exchange Online or Exchange 2016 consoles. Think of it as a forced retention of keeping mailboxes smaller to an online version of a PST that can’t be downloaded separately.
If you still want to disable Archive in Outlook, you can do it but Microsoft has made it moderately difficult. There is no set GPO for to disable the buttons, but you have to create a custom registry entry:
HKEY_CURRENT_USER > Software > Policies > Microsoft > office > 16.0 > outlook > disabledcmdbaritemslist
KEY = REG_SZ = TCID1
Value: 26308
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