After facing this issue and searching all the possible setup setting in Outlook, found the reason due to which this was happening.
In Gmail, in settings for Forwarding and POP/IMAP, Under IMAP Settings, a option is available for "Folder Size Limits" This has two options.
Option 1 - Do not limit the number of messages in an IMAP folder (default)Option 2 - Limit IMAP folders to contain no more than this many messages
Option 2, has a dropdown from which can select the number of messages to limit ( 1000 / 2000 / 5000 / 10000 )
When Option 1, is selected by all messages are synced in Outlook. By selecting Option 2 the numbers of messages shown in Outlook is restricted. Have noticed the latest emails to the limit are only shown.
So to show all messages in Outlook, when using IMAP sync method for Gmail / Gsuite email, should select "Do Not limit the number of messages in an IMAP folder" option.
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