can i sync my outlook with my apple contacts?

you have to add your outlook account to the Passwords and accounts settings and check the Contacts box.

If outlook acct has two factor authentication you may have to create a one time password.

Uncheck contacts box on other accounts

If you were able to add your outlook account to Mail using your normal password then there is no need for a one time password.

If you got an incorrect password message when you tried to add your outlook account to Mail then you use a freshly created one time password in its place.