Sending emails in Outlook to new contacts using IOS App

From IOS Outlook app. Copy/paste, or type new email address, into New Message. Outlook prevents one from going any further without verifying it via the (contacts) Directory. Found 0 Directory Contacts.

Exit/abort. Goto Apps>Contacts, click +New Contact

Pop-Up Window: Access to Contacts Needed. Please allow Outlook to access (decades of accrued private email and cell phone #s to my personal friends and colleagues).

Click Later : reverts to Contacts Screen > +New Contact (endless loop)

Unable to proceed.

Sooo #1, to add a Contact in Outlook, Microsoft is requiring all users to provide Microsoft with every single contact in our phones? WTx? I simply do not want all of my personal contacts to be incorporated into the company's dbase, nor shared with any company for that matter (even Microsoft).

Secondly, to send an email to anyone, they must be already in Contacts, period. WTx? Why doesn't Outlook let us proceed after typing/pasting in an email address?

I've recently returned from gmail/google products to Outlook, which I loved for decades. This new '365' platform is not that. LMK if I've missed a clear and simple workaround here but otherwise, Microsoft, this is unacceptable.