AFAIK, 2.53.6 is the latest f/w available for the SML004 (mine's paired to Hue, so I get the automatic updates). Not sure if the 5 and 3 being swapped in your log entry is a typographical error or actually indicative of an earlier version (but I suspect the former, since the motions sensors haven't had an update in a long while).
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Copy/paste from logs. So, no typo.
sys:12023-11-26 11:32:02.705 AMinfoFirmware update for Outdoor Hue Motion Sensor, Signify Netherlands B.V. 100B-011B-02003506 is not available.
Well, I will tag support. Because honestly it sucks that the latest Hue Outdoor Motion sensor works fine on a C-7 but doesn't work on a C-8. Seems like that could be fixed some how. 
@bobbyD
Unfortunately the C-7 is down in the basement next to my core network switch and probably won't reach to the front yard where the sensor needs to be. I wasn't using the C-7 for anything but non-Z stuff like Govee, Lifx, Kasa etc.
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So here's the weird thing. I unpaired it from the C-7. Factory reset the outdoor motion sensor again. Paired on the C-8. It's been working fine for 17 hours so far. The only difference was it was paired to the C-7 for a while. Don't know if it will last, but passing this along in case it helps the developers or anyone else.
I'm not going to claim to be a Zigbee expert, but to me it feels like you need to stick to one hub (C-7 or C-8) and work through troubleshooting it. I would expect there are so many potential variables between the two hubs / mesh networks, such as routing devices involved and/or the general health of each network, so it would be hard to compare the experience between them, at least given the short period since you bought the sensor.
My gut feel would be, if you adopt my suggestion, to stick with your preferred setup of using the C-8, trying to work out why it is having issues. Could there be channel issues or other interference, etc.
I'm sure that the timeline was hard to follow. But it's like this. I need this sensor to be on the C-8. That's the one running Zigbee, has external antennas and is pretty close to where the sensor will be mounted in the front of the house. I tried at least 10 times to get it to pair AND stay on the network. No dice. Some folks suggested that newer Zigbee devices have problems with the C-8. I had nothing to lose so I thought I'd try turning Zigbee on for a moment on the C-7 to see if it worked there. It did. Just fine. BUT, the C-7 is not used any more for Z-Devices, just 3rd party integrations. So, I factory reset again and for the heck of it, tried the C-8 again. Surprisingly it's been working great for quite a while, like 19 hours. I shared this in case it would help someone, not because I did a whiz-bang job of troubleshooting. No offense taken, though reading this it sounds like I did take offense. 
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Plus, it's not likely Staff will be helping you every step of the proposed methodical troubleshooting. They're concerned with other Matters.
I see what you did there. 
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I'm as open to wordplay as the next nerd guy, but would imagine those focused on supporting the platform are not distracted at the moment with matters outside of their control.... So if you can't connect a device support are likely happy to help as always, everything else doesn't matter atm. (Ok, maybe I'm stretching the metaphor there, or whatever the right term is... )
Good to know, hopefully my habit of not reading, or reading in enough detail didn't cause any offense, I'm just lazy...
The fact the device is now working with the C-8 still doesn't sit well with me... nothing you have done wrong, just it's nice to know why... But hey... it's nice you got it working.
For me, like I think a few others may have mentioned, the initial firmware update on the Hue bridge may have taken some time to take effect, so if nothing else the initial stages were at least bumpy... hopefully that is all that is happening here.
they chose that path
I meant support are not (yet) likely distracted by supporting Matter devices, so can help where needed with Z-type devices.
With that said, and my earlier comment, as always, all meant tongue-in-cheek... I'm not seriously suggesting Hubitat support would not support their customers... regardless of the tech they choose to make use of. Just having some fun with the term Matter....
Just to close the loop, I don't have a Hue bridge, I directly connect these sensors to HE. And apparently this shipped with the latest firmware. And I agree, it suddenly working on the C-8 is nice but not the sort of repeatability you'd want.
I guess you could always buy another one, lol.
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So, I keep a Home Assistant instance w/ Zwave and Zigbee antennas (I was toying around with switching because HA has RIDICULOUSLY broad device support, but, it's still not super end-user friendly so I stayed with Hubitat, but I digress).
I had Hue outdoor motion sensors as well, and they would repeatedly fall off both my C7 and my C8 platform. I paired one to my HA just to see if it would stay connected, and once paired, HA reported a firmware update was available, so, after applying it, I then repaired to my C8. This was 2 months ago, and they are still running strong.
Might be worth getting/keeping a Hue bridge around just to apply those updates.
Mine (both indoor and outdoor) have been the same way, but It works fine. At first after I paired it I left it On a table in a high-traffic area and just watched the logs. It worked just fine.
Occasionally the outdoors will flash red momentarily. But is functioning just fine.
I didn't mention this before because people don't usually want to go to such lengths to use motion sensors that normally do work fine directly with Hubitat, but it's worth mentioning if anyone does happen to have a Hue Bridge and Home Assistant, in addition to their Hubitat hub.
The Home Assistant Hue integration allows full and instantanious integration with the Hue Bridge, meaning that if you have your Hue motion sensors joined to a Hue Bridge (like I do) then Home Assistant can access all the attributes of the Hue motion sensors with no delay. That integration can also control Hue lights and get their status without any delay or sync issues with the Hue app. I don't bother using it with the lights, since I don't care if they don't instantly sync with the Hue app and Hubitat's Hue integration, but I do use the HA Hue integration for my Hue motion sensors.
If you install Home Assistant Device Bridge on HE, then you can leave your Hue motion sensors joined to the Hue Bridge (my personal preference) and get their status in HE by way of HADB and the Home Assistant Hue integration.
This is indicative of the sensor not receiving an ack from the hub for the event that it just submitted, so its a bit out of range of the hub or another repeater.
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My Hue bulbs are all connected through HA with the HADB enabled. My zigbee mesh has been SO much happier since moving the Hue bulbs to HA and controlled via the bridge. If the Hue bridge integration is 1/2 has good as the HA bridge, then it would also be an awesome option.
I did the HA just to avoid having to buy a Hue bridge since the HA was already on hand.
I did leave the Hue motion sensors (indoor and outdoor) on Hubitat. They seem to all be fine now, including the outside ones once they got a firmware update...
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If your setup is working for you, there's no need to change it. I had my Hue bridge long before adding HA into the mix. No sense in my moving anything off of it, and I prefer to keep my bulbs on their own network. I use Z2M for a lot of Xiaomi and some IKEA Zigbee devices, which has been working perfectly. I wouldn't want to mess with around by adding bulbs that would potentially end up being poor repeaters for my other Zigbee devices on HA.
There are also a couple of handy apps I own that only work on the Hue bridge, so that's another benefit for me personallly.
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Not that it's been an issue, but would booting the Zigbee power help? I am more invested in Z Wave, so my Zigbee mesh is small (and getting smaller) The outdoor, is well, outdoor, about 30 feet from the hub (C8) on a brick wall, next to a plate glass window. I would need to look, but I believe the zigbee power is currently set on 4
