I'm having the same issue, and -- in addition -- now I cannot add back my Gmail account to the Outlook. Any ideas how to fix it? I tried to uncheck the TLS 1.3 recommended in another question stream [Control Panel], select [network and internet] - [Internet options], in the [Advanced], the following options to check, and uncheck the "use TLS1.3",], but I'm now getting an additional error within Outlook: "We weren't able to set up you Google account with IMAP. You may need changes to your Gmail settings."
It was all working perfectly until yesterday morning (8/8) US time -- i.e. could send emails from Outlook without bouncing back, but now -- after removing the Gmail account and trying to add it back -- Outlook (classic) doesn't let me add the account back. I'm using the Microsoft 365 Family subscription of Outlook.
Any ideas as to how to fix it?
UPDATE: Interestingly -- my other gmail accounts work perfectly in the Outlook, only that one particular gmail account (my main account) is having problems -- i.e. after removing I cannot add it back to Outlook, and I cannot send the emails anymore (it worked intermittently without any changes from my side) from Outlook on my Samsung phone or New Outlook