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Microsoft Teams | Microsoft Teams Free | Calendar
Managing and scheduling events and meetings using the calendar in Microsoft Teams Free
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Hi, @n singh
Microsoft 365 Family uses a personal account, and the Teams Meeting add-in is not supported in Outlook with Microsoft Teams Free. This is why the Teams icon is grayed out and keeps asking you to sign in.
You can create the meeting directly in Teams Free, then copy the meeting link into an Outlook calendar invitation.
Just to confirm, are you using the same personal Microsoft account in both Outlook and Teams? Are you using classic Outlook or the new Outlook?
If this is actually a work or school account, please mention that, as the troubleshooting would be different.