Managing personal Outlook.com account settings, security, and privacy
In that Email is Pegasus mentioned and is the Email indicated as coming from your own Email account, then did the Email indicate they had access to all your data, PC and accounts and did they demand a crypto-currency payment or they would release your data to your contacts... etc.?
If that is the Email you are seeing, that is a well known scam named the Pegasus scam, they spoofed the sender's Email to look like your own, they do not have any access to your accounts, PC or data, it is just a scam, you can safely ignore and delete that Email, do not interact with the scammer.