Using Outlook for iOS for personal email and calendar management
I have also had this exact same problem on my iPhone Xr with the latest iOS 14.2, and only with the Outlook app. This is my work phone, which is managed by my organization, so many of the suggested fixes here are not easily available to me.
For anyone else in this situatuon, I have found another fix that I can actually do myself that seems to be working for me: Turn off Slide To Type
Go to Settings -> General -> Keyboard and untoggle “Slide To Type”
Hope this helps someone else experiencing this maddening problem.