wp_logout action hook is not firing

In your code, get_current_user_id() will return 0 because this hook fires after the logout has happened, ie, there is no current user ID.

If you want the $user_id to be available to your function, you have to pass it in. Note: the $user_id parameter was added in WordPress 5.5.0. If you’re using an older version, this won’t work the way you want.

function update_login_status_on_logout( $user_id ) {
    if ($user_id) {
        update_user_meta($user_id, 'login_status', 'logged_out');
    }
}
add_action('wp_logout', 'update_login_status_on_logout');

References

• wp_logout hook
• wp_logout()