Basically let's say there's a Dragonite holding the covert cloak, and it uses Outrage, will it become confused?
Dragonite would still get confused.
Pokémon holding a Covert Cloak are unaffected by the additional effects of other Pokémon's damaging moves
It also doesn't prevent additional effects that apply to the user, so for example a Pokémon using Flame Charge will still be able to increase its own Speed even if it hits a target that is holding a Covert Cloak.
Source.
Hope I helped!
