Solution:
1. Uninstall Outlook installed update named "Update for Microsoft Office Outlook 2007 (KB2412171)".
- Go to Control Panel > Programs and Features
- In Tasks pane, click View installed updates
- In search bar, type KB2412171, then right click > Uninstall
or
2. Can't find KB2412171 to uninstall, yet I have symptoms
- Look for update KB2509470, then right click > Uninstall
- Restart
- Check the installed updates again, KB2412171 would appear then right click > Uninstall
- Restart
The Archive item will then appear in the File menu.
