All offline contacts gone after phone update

Jumping late into this thread after being redirected from my OP :
https://forum.fairphone.com/t/android-10-upgrade-no-more-local-contact-account/67988?u=benvcarlson
My contacts database is in Outlook on my PC (in a local PST file for historical reasons) -> manual sync using MyPhoneExplorer no longer works b/c the local phone account is now history it seems.
So in an attempt to find a workaround, I tried moving my Outlook contacts from the PST to my online (Hotmail) account, then enabling Outlook/Hotmail as a Contacts account (Outlook for Android is installed) in the Contacts app.
Surprise: sync works only one-way: contacts created in this account on the phone get replicated to my Outlook/Hotmail account (as seen on the PC), but none of the existing contacts in Outlook/Hotmail are visible on the phone !!!
All sync setting I know are enabled for Outlook on the phone…
Any clues ???

Update:

ooops, after adding a new contact on the PC side, all Outlook/Hotmail contacts are now visible in Contacts…this may be just a coincidence and due to a sync delay…strange.
And existing SMS, WhatsApp chats, Phone calls get now properly resolved to the corresponding names…

I have now to decide whether to keep my contacts online with Hotmail or install the MyLocalAccount app and return to no-cloud contacts management and manual sync…
A matter of perception of privacy/security and unnecessary use of bandwidth (cf. the braoder thinking about “why should this data be in the cloud when I’m happy with pure local storage and contribute to the general data overconsumption?”), I guess…