Thank you for reaching out to Microsoft Q&A forum.
May I ask which type of account are you using? (Exchange, POP/IMAP)
Did you download Outlook via App Store or directly from Microsoft website?
If you got the app through App Store, please uninstall it and download it directly from Microsoft web.
Update history for Office for Mac - Office release notes | Microsoft Learn
You can try to install the latest version 16.105 or if you didn't meet this issue before, consider downloading previous version. My recommendation would be version 16.102.x. Also please turn off Auto update in Help > Check for updates > Untick Automatically update.
I'm currently using the same version and got it from the web; I did not see this behavior. In your Activity Monitor, can you name which one is taking up so much RAM?
For example, Microsoft Outlook Web Content, etc.
Please try downloading from the web and provide more information so I can assist you better.
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