It is hard to understand. I'll say that I haven't had any troubles for quite a while, despite having numerous updates etc. After all this time, it seems that some level of device driver or OS config must be getting in the way of operation.
PhoneLink doesn't update with MS Update; it does it itself. Right now the app is at Phone Link 1.23082.131.0. I use a Surface Laptop 3 Model 1872 i7, running Windows 10 Pro, build 19045.3516, Intel Wireless Bluetooth version 22.250.0.2. My phone is a Samsung Galaxy S10 running Android 12, security patch March 1 2023. And Phone Link syncs with my contact list in Outlook, in Microsoft 365 at the most recent update level