iCloud for Windows does not show calendars and contacts in Outlook 365 Windows 11

I have been using Outlook for a very long time with no issues synchronizing it with my iCloud.

However, with recent update of Windows 11 my iCloud calendars and contacts disappeared from Outlook and there is no way to get them to appear again. I tried everything - uninstall, restart, reinstall, repair, reset - but I just cannot make it work. I got some advice to try to install old version of iCloud for Windows 7 and it magically it worked! But I lost the ability to sync my bookmarks and my iCloud passwords in MS Edge.

Does anyone else has the same problem?

I am very frustrated since I use my several email accounts, iCloud being one of them and not being able to add iCloud to my Outlook on my laptop is a major inconvenience.

Thanks