Thanks for the tip, instead of enduring any longer, i decided to downgrade, which was easier than I expected, and this old version works, doesn't have this bug.
Just delete the Outlook app from the Applications folder, and run the Outlook installer from version 16.109.3 (June 02, 2026) [1]. All data is there, no need for any backups or anything.
Then, delete (or rename) the Microsoft AutoUpdate App, which lives in: /Library/Application Support/Microsoft/MAU2.0
[1] https://learn.microsoft.com/en-us/officeupdates/update-histo...