From what I can tell, after reading through this entire thread, the issue is still unable to be resolved. It appears to me to be a problem with Office 2011 communicating with the newer Mac OS, where you cannot see photos anywhere other than those from Photo Booth when you are trying to insert photos into a PowerPoint presentation.
The only thing I see here is the workaround of dragging photos from Photos to your desktop and seeing those in Finder.
Has anyone else found any setting that allows you to see photos within PowerPoint to insert them directly from Photos? Or is this just an unresolvable issue due to Microsoft and/or Apple not making Microsoft Office 2011 compatible with the newest OS?
Seems to be the case but I'd welcome any other solutions that people have found that aren't just file dragging workarounds.