The Exploit Mitigation component is still enabled, only Outlook is excepted for a temporary period untill Sophos fixes the cause.
I verified that Outlook did not crash while Sophos was uninstalled. I reinstalled Sophos at the end of the day on 1/21/2021. After reporting this to Sophos they sent me the same hotfix you mentioned above. I went ahead and added the same exclusion for Microsoft Outlook to Exploit Mitigation and will monitor the results for the remainder of the day today.
I put the same Microsoft Outlook exclusion for Sophos Exploit Protection in on Friday, and have not had one crash since. I have updated my Sophos ticket to indicate this and the first thing they sent me was the hotfix you mentioned above. I installed the hotfix but, since it has already been demonstrated that the hotfix does not resolve the issue with Microsoft Outlook, left the Microsoft Outlook exclusion in place. Waiting for further follow-up from Sophos support.