Can I use OUTPUT from an UPDATE in an INSERT?
Here is an example of using OUTPUT...INTO

--demo setup
drop table if exists InsertTest;
Create Table InsertTest (id int);

drop table if exists UpdateTest;
Create Table UpdateTest (id int);
insert into UpdateTest(id) values(1),(2);

--solution
UPDATE UpdateTest
SET id = id + 1
OUTPUT INSERTED.id
INTO InsertTest;

--verify results of insert
select * from InsertTest




ID
2
3