There appears to be a flaw in Power Automate with Outlook 365 appointments. Let’s say I create a Out of Office, all-day, recurring appointment for 5 days, Monday through Friday.

Power Automate will fire 5 times on the When an event is added, updated or deleted (V3) flow. Despite it being an Out of Office appointment, the flow will see it as a free appointment:

Our solution, for the time being, is to not use recurring appointments. Instead we do a multi-day appointment so it does appear as “oof” within the flow. I hope they correct this issue in the near future.