Protection against phishing, malware, and other threats targeting email and collaboration tools in Microsoft 365
Since it's coming in through your GMail account, you can use whatever report phishing email option exists in that email client to report these and it will also be provided to Microsoft, the FTC, FBI or others as appropriate, since these organizations all have cooperative arrangements to prevent scams and protect their customers.
Most email clients provide a pull-down menu when you right-click an email message that includes options to Report Junk, Report Phishing and possibly others. How this works when in a browser-based email client like you were above can vary, but typically there's a similar method for doing it there as well.
The advantages of submitting an email this way are that it's easy, automatically includes all headers and other critical information to your email provider's abuse group and that it can be more easily processed by the automated systems these organizations now use to classify, verify and distribute the message to other organizations involved, so it's really better than anything else you can do manually yourself, since it allows them to quickly respond by doing things like shutting down the offending email account sending the spam if that can be determined from the message headers.
You were correct this was a scam, or really a phishing message, since beyond the fact Microsoft [used to be called Windows] Defender is free, the existence of a phone number is a dead giveaway, because Microsoft doesn't provide direct access phone numbers for consumer users and hasn't for many years, so the phone number immediately indicates the email is fake and specifically phishing, since it's trying to get you to contact the scammer directly.
Rob