I'm having the same issue, however I am on a slightly older version of Outlook. Have NOT updated to 16.73 yet, so I don't think this is a Microsoft update issue. I feel like it is a Yahoo thing. This started for me either late on May 18, or early May 19. Everything was working fine until then and I've made no changes/updates to my computer or to Outlook. I saw posts in another forum on reddit and seems like this started for those folks in the last week as well.
I have both AOL and Yahoo accounts and initially it was just the AOL account affected. However, this morning I noted that my Yahoo account is now exhibiting the same behavior. (AOL is actually a Yahoo-based email account so this makes sense.) I also have a third account that is through our Exchange server at work and it appears to be ok in Outlook, so that points to it being a Yahoo issue as well. I spoke to AOL support on Saturday and their only suggestion was to use webmail or their app to get my email. I told them that wasn't acceptable since Outlook is the business standard for email and their service should be compatible. They just kept blaming my computer and Outlook as being the problem and wanted me to jump through all the usual hoops.
I was also receiving the messages about the Drafts, Junk, Sent etc. folders not being able to be created because they already existed. This would happen each time it was downloading my email box. I checked the Advanced/Folder settings in Outlook for the account and they were not matching up to what was showing in webmail for the account. (Some of these folders were also located within the list of folders/subfolders I have created to store my emails in the sidebar of webmail rather than appearing at the top of the list with the other AOL default folders.) I changed the Outlook folder settings to map the folders to what was in webmail and now I don't receive those error messages, but it is still continually downloading my inbox and all my other folders/subfolders.
For most of Sunday it appeared to be working as usual, but right before I got ready to go to bed, it started up again. One other thing I did try was to go into the Advanced Settings for the account in Outlook and uncheck the IMAP idle settings and restarted Outlook. I can't remember now, because I was fighting it all weekend, but that may have been when it was working normally. I know I did turn those settings back on at one point. (If you do turn them off, you may have to hit the Send/Receive button to get new mail.)
I use Mail on my iPhone and everything seems to be working as expected for these same accounts there.
I really think Yahoo has done something to change their folder structure that is causing Outlook to have problems.
If anyone does figure this out, please post your solution back here for the rest of us and I will do the same.
Thanks!