Managing personal Outlook.com account settings, security, and privacy
Yes, an unknown forwarding address is a strong sign that you should secure the account immediately.
In Outlook.com, go to Settings > Mail > Forwarding (or Forwarding and IMAP), select Disable forwarding, then Save. Microsoft instructions: https://support.microsoft.com/en-us/outlook/mail/turn-automatic-forwarding-on-or-off-in-outlook
Also check Settings > Mail > Rules and delete any rule you did not create, because forwarding can also be hidden there.
Then immediately change your Microsoft account password, review Recent activity for unknown sign-ins, and use “Sign out everywhere.” https://support.microsoft.com/en-us/accounts-billing/security/what-is-the-recent-activity-page https://support.microsoft.com/en-us/accounts-billing/manage/how-to-sign-out-of-your-microsoft-account-everywhere
Finally, enable two-step verification for extra protection. https://support.microsoft.com/en-us/accounts-billing/security/how-to-use-two-step-verification-with-your-microsoft-account
After doing this, send yourself a test email and check Forwarding and Rules again to make sure the unknown address does not return.