Sending, receiving, and organizing email in Outlook.com
Thanks for sharing the exact error.
The 550 5.1.8 AS(42004) message means Microsoft has temporarily restricted the account from sending email. This can happen after unusual activity, suspected spam, or sending many messages.
The Email & collaboration > Restricted entities page is for Microsoft 365 business accounts. A personal Outlook.com account will not normally appear there.
To confirm which steps apply:
Does your address end in @outlook.com, @hotmail.com, or @live.com, or does it use your own business domain?
Do you have Microsoft 365 Personal or Microsoft 365 Business?
Also, check your Sent folder. Do you see messages you did not send, or did you recently send a large number of emails?