I know a bunch of sites who do that and the problem is usually that register emails get flagged by outlook and never arrive, causing a lot of support burden. Easier to then nudge people into the direction of Gmail or other providers that don't have these issues.
I've been down that road before. Blocking Outlook and Protonmail filters out 0% of legitimate users and 75% of bots. You do what you can so you're not always 1 step behind.