Hi Michelle
Thank you for reaching out to the Microsoft Q&A Forum and for sharing the details of your issue.
I noticed that Vimantha Fernando has shared several troubleshooting suggestions in the thread. If you haven't had a chance to review them yet, I recommend trying those troubleshooting steps to see if they help resolve the issue.
Additionally, I tested the same scenario in my environment using the new Outlook for Mac on macOS Tahoe 26.3.1 (a), and email synchronization and sending worked as expected.

If possible, you may want to consider updating to macOS Tahoe 26.3.1 (a) to see whether the issue has been resolved in the newer macOS version.
Please let me know how it goes. If you need any further assistance, please don't hesitate to let me know.
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