This might be a useful change for organisations whose staff access Office 365 through firewalls and proxy servers. Microsoft recommend allowing direct (non-proxied) connectivity to their service endpoints in order to minimise latency and give the best user experience, or at least disable proxy authentication when accessing them. If your browser traffic goes down a corporate VPN connection then Microsoft recommend configuring a split tunnel for Office 365. Yes, they are that pretentious. No, for the most part it isn't actually necessary. The exception is Teams, which needs its media streams to be firewalled through in order to work adequately. If this isn't done it will fall back to encapsulating the traffic within HTTPS which doesn't tend to work very well.
Microsoft publish an updated list of endpoint host/domain names and IP addresses each *month* that admins of such organisations should supposedly use to update their firewalls/proxies/PAC files/group policies that control the flow of Office 365 traffic. Mercifully the list is available in machine-readable (JSON) format, but it's very helpfully left as an exercise for you to figure out how to script it into place. See here for the gorey details:
https://learn.microsoft.com/en-us/microsoft-365/enterprise/urls-and-ip-address-ranges?view=o365-worldwide
The list of domain names gives me the distinct impression of a bunch of people working on Office 365 without any coordination, throwing the product back-end together at random with no real plan. If all that rubbish can be simplified down to *.cloud.microsoft then that would be useful. I wouldn't be surprised if Microsoft found it a burden to keep track of it all too. This just leaves the IP addresses, which is more forgivable as it hopefully provides some redundancy/resilience.