Using Classic Outlook on Windows for personal email, calendar, and contact management
Just to be clear, you are running the command at the Tenant level??
Run on a test workstation (Powershell as admin)
nstall-Module ExchangeOnlineManagement
Import-Module ExchangeOnlineManagement
Connect-ExchangeOnline -UserPrincipalName [USER@DOMAIN].com -ShowProgress $true
Get-ExternalInOutlook
Then rerun the command at the tenant level
Set-ExternalInOutlook -Enabled $false