I've been using Outlook as my primary email address for a couple of decades, never have I received an email stating these terms. Log into your Microsoft account here
Microsoft account | Sign In or Create Your Account Today – Microsoft (copy & paste into your browser.) to learn if you provided your phone number when you initially registered your Microsoft account. If not, add your phone number and delete the email received. In any event, do not respond to the email, do not click on any links within the email!