The Microsoft instructions for "If you use Apple Mail" are at almost the end of page here:
https://support.microsoft.com/en-us/office/modern-authentication-methods-now-needed-to-continue-syncing-outlook-email-in-non-microsoft-email-apps-c5d65390-9676-4763-b41f-d7986499a90d
Apple instructions for removing and adding an account in Big Sur are here:
Use your internet accounts on Mac - Apple Support
I removed a Hotmail account and set up someone's account in Monterey. Although the Microsoft article suggests to use an Outlook account when you again set-up, when it was tried the user had some issues. The issues might have been on the user end, conflicting software etc., or could have been a temporary internet glitch. Regardless, I ended up removing the Outlook account then set their Hotmail account as an Exchange account. It's worked well for more than a few weeks and idevices set-up as Outlook weren't affected by the Mac switch.