@Anandu Ramachandran , Thanks for posting in Q&A. In fact, Intune deploy the configuration file to the devices and then uses the Office Deployment Tool to download and deploy Microsoft 365 Apps to your client computers using the Office 365 CDN. If the Office Deployment Tool is not there, it will download and install it. However, if the tool is failed to install, it will affect the install of Microsoft 365 app.
https://learn.microsoft.com/en-us/mem/intune/apps/apps-add-office365
Hope the above information can help.
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