According to Microsoft’s official post on the matter, here are some known problems the new update is causing:

Outlook fails to connect if Secure Password Authentication (SPA) is configured for an account and the mail server does not support SPA. This is important for Google Gmail users because Gmail does not support SPA. Outlook customers using Gmail who have the SPA option turned on cannot connect to Gmail.Noticeable performance issues are experienced when switching between folders if you do not have a Microsoft Exchange Server account configured in Outlook. Switching folders might take several seconds depending on the performance of your computer. This issue only applies when you use an IMAP, POP3, or Outlook Live Connector account, such as Windows Live Hotmail, and do not have an Exchange Server account configured in the same Outlook profile. To determine if you are using an Exchange Server account, see the help article What is an Exchange account?AutoArchive cannot be configured for IMAP, POP3, or Outlook Live Connector accounts if there is no Exchange Server account configured in the same Outlook profile. If you previously configured AutoArchive, no additional items are archived.

If you’ve installed this update, their advice is to uninstall it immediately.

How to Remove Update KB2412171

Click Start, and then click Control Panel.Click Programs, and then under Programs and Features, click View installed updates.Click the entry for KB2412171, and then click Uninstall

Click Start, and then click Control Panel.Click Add or Remove Programs, and then make sure that the Show Updates check box is selected.Click the entry for KB2412171, and then click Remove.

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