Basically would it select it? It wasn't on the unslectable list on bulbapedia, but it hits multiple turns so what would happen? Would it use it only once? Would it use it once then become confused? Same with thrash and petal dance.
It hits only once, and it doesn't confuse you. I've gotten Eviolite Dragonair multiple times in Gen 5 random battles, and it always has Sleep Talk + Rest + Outrage.
Hope this helps! :)
"User performs one of its own moves while sleeping"
This would probably only make outrage work once.