A family of Microsoft word processing software products for creating web, email, and print documents.
Please don't be misled by the AI references to AutoRecover. AutoRecover can be effective only in the case of a critical failure. Neither does Word support versioning for locally saved files. This is an excerpt from Word Help:
Important: Version history for Microsoft 365 apps is available only for documents saved to OneDrive, SharePoint, or with AutoSave.
Note that iCloud is not included.
The unfortunate fact is that a local file which is overwritten by the OS [not Word] the prior content cannot be recovered unless you are using the Mac's Time Machine feature or have previously installed a file recovery utility of some type. Time Machine enables resurrecting a prior version of the file. File recovery software may or may not be able to recover a prior version but usually isn't successful if installed after-the-fact. Neither is effective on overwritten files – they're primarily for recovering files which have been deleted.