Hi, I'm having the exact same issue.
We are having issues with Outlook 2016 and M365 Outlook and On-prem Exchange 2016 Enterprise
The update released 10/11/2022 is breaking the connection between Outlook and On-prem Exchange
Clients
Windows 10 and Windows 11
Outlook M365 Business and On-prem Outlook 2016
Server
Servers OS 2016 Standard
Exchange Enterprise 2016
Once (KB5018418) is installed in windows 11 M365 Outlook version 2209 15629.20208 or 2209 15629.20156 would report "Disconnected" from the exchange server.
Other workstations with windows 10 (KB5018410) and M365 Outlook or Office 2016 also reported the issue.
Once this update was removed and the system restarted the problem went away.
Restarting the clients without removing the applicable update produced no changes and Outlook would still show "Disconnected"