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I have a Microsoft 365 Family account and in outlook there is an option to configure a personalized domain.

I haven't actually switched it yet so I can't confirm that it works, but the option is there.

From what I understand you can use a custom domain on the personal/family plans, but if you're aliasing emails (e.g. info@yourdomain, notify@yourdomain) to a single address, you need the business plans.

Offically you can only use the Family account on a custom domain register with GoDaddy, there are a few hacks out there to get around this but they could be broken at any time

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