Hey Aryanak! No, Front does not automatically change a user's availability status when they join a meeting from their Outlook calendar. While Front can sync with your Outlook calendar to hide conflicting time slots when using scheduling links preventing double bookings. But it does not update your user availability status (such as Available, Busy, or Out of office) based on your Outlook calendar events.
I looked and we do not have an open feature request on this so I encourage you to submit a request for it at this link.
This feature submission form is linked to our Product Ideas Portal which is accessible to all users. When features are submitted, they are listed in the Ideas Portal and can be upvoted by other Front customers who may want the same feature to improve their team's workflows. You'll receive an email update if your feature is developed and shipped!