Thank you for the very detailed advice. I already have a Rhode Gear bike rack that is 1.25 size. I will have to see if the holes line up. I will have them save the parts. Thanks again.I had the factory 1.25" hitch installed on my 2017 Outback when I first got it. I should have gone with an aftermarket 2" receiver from the start and have upgraded mine recently and removed the factory Subaru hitch. There are many more options for accessories for a 2" receiver hitch than the Subaru hitch, and Subaru has a non-standard pin-hole location that may even limit the use of some 1.25" accessories.
The rear bumper cover will be removed as well as the foam absorber and the steel bumper beam. The foam absorber and the bumper beam will not be reinstalled with the Subaru hitch when the bumper cover goes back on. If you go with the Subaru hitch ask to keep the parts they remove and leave off in case you later either remove the hitch or upgrade to a different one. With any other hitch or with no hitch the bumper beam and absorber will need to be put back in. I didn't keep these parts when I had my first hitch installed and had to buy a bumper beam when I later changed hitches.
Personally I would go with a 2" aftermarket receiver hitch to begin with and skip the Subaru factory hitch. Which one is a whole different question.