Hi Jim,
That looks like a corrupted Outlook profile or local data file. Try to create a fresh Outlook profile and let it build a new mailbox cache.
Close Outlook completely. If Outlook still shows in Task Manager, end it. Now open the old Control Panel in Windows 11. Set View by to Small icons, then open Mail and click Show Profiles.
Click Add, name it something like Jim, then sign in with your Microsoft 365 account and finish the setup.
Back in the Mail window, under When starting Microsoft Outlook use this profile, choose Always use this profile, select your new profile, then click Apply and OK.
Start Outlook. It will create a new OST and resync your mailbox. Give it a few minutes to finish the initial sync, then test moving mail between folders and copy or paste between messages.
Important note: if you have any POP accounts or personal PST files. Do not remove the old profile until the new one is working. If you need old local mail, add the PST in the new profile using File > Open and Export > Open Outlook Data File, or export from the old profile first.
Tell me how it goes. If Outlook still fails to launch after using a new profile, I will walk you through the next step.