Does anyone use Fantastical with their work calendar, particularly Microsoft 365 / Exchange?
I get this message when I try to add my account and it makes me suspicious.
I used to, but the IT department at work blocked all clients except Outlook 
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I log in with an Exchange account. So long as it sends you to Microsoft’s authentication after you continue, and are okay with the permissions for sharing back to Fantastical, you should be okay.
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It wants access to my entire inbox, which seems excessive.
I use Google Workspace but AFAIK MS365 has the same features. A meeting request, for example, can include information from mail, contacts, tasks, and notes.
So it makes sense to me that Fantastical would request access to everything that it needs to accomplish any task that you may request.
This is the message I used to see when signing into my work 365 account with Fantastical. It does continue to the genuine login page.
Our admins adapted the login page to our 365 accounts to include the logo for our academy (on the page where it asks for the password, after you have entered only your email address). It provides us with a visual prompt that we were on the genuine login page and not a phishing site.
After clicking on the continue button shown in your screenshot I was always directed to the correct login page for our Office 365 accounts.