I have this same issue. No problem with the same Logi MX Keys connected to a Win 10 LG laptop. I have noticed if use the up or down arrow and wait 1 second between each press, it works normally. But, for example, if I quickly press down arrow five times, it jumps all over the place.
Windows 11
Microsoft® Outlook® for Microsoft 365 MSO (Version 2304 Build 16.0.16327.20200) 64-bit
Dell XPS with GeForce RTX 3060Ti (latest WHQL drivers only)
Logitech MX keys keyboard (latest software and firmware)