Anyone can sign up to Microsoft 365 for free and use their <username>@outlook.com addresses that are automatically created when they sign up. In their paid plans - Personal and Family - you can even connect your own domain to Outlook and use it to receive and send email. That is, if your domain is registered with GoDaddy.
I have a domain, but it is not registered there; a bit disappointed, I researched the internet and found following reddit post:
Ever since I got my home office 365 family subscription, I had my eye on the option for the personalized domain name in outlook. However, according to Microsoft, only domains hosted with GoDaddy could be connected and used. […] but I don’t want to switch registrars.
But I pieced information together how to get the personal domain in outlook without even using or switching to GoDaddy and use my current hoster!
Visit Reddit for his solution to setup a custom domain in Outlook.
Now, however, Microsoft has announced the Office 365 Personal & Family plans will end support for personalized email on November 30th 2023 - in just a few days from now. Until then, you can still go through the setup process - it will continue to work after that date.
Other personalized email solutions with Outlook
If you don’t want to or cannot use the GoDaddy integration, you can also use the “Synchronize emails” option from Outlook’s settings. It fetches email from another mailbox through IMAP or POP3 and uses the same credentials to send email via the SMTP server. I find this is clearly a 2nd class solution, since email reception takes place with a delay and the alias to send email is not used in every instance: eg. when you send out meeting invitations, it uses the @outlook.com address instead of the custom one.