You shouldn't need to select any account type when adding an Outlook.com acount. All you would need to do is enter the email address / password for the account assuming that the primary alias for this account is a Microsoft based email address (@Outlook @Hotmail @Live @MSN) and that is the email address you are using to add the account.
What I would suggest to simplify this is to create a new Outlook profile using the Control Panel Mail app and configure the account again
a) - With Outlook closed open the Control Panel <Mail> app
Just in case you need info regarding how to access the Control Panel Mail app, that's described in the following article by Outlook MVP Diane Poremsky
Where is the Control Panel Mail icon?
https://www.slipstick.com/how-to-outlook/where-is-the-mail-icon/
If using Windows 11
How to Open Control Panel in Windows 11
https://www.lifewire.com/open-control-panel-in-windows-11-5193187
b) - Select <Show profile=""> --> <Add> --> give the new profile a name
c) - Configure your email account(s)
d) - Set the newly created Outlook profile as the default for the next time Outlook is opened otherwise it'll use the old profile
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</Add></Show></Mail>