We utilize a SharePoint communication site that incorporates links to MicroSoft 365 files. Up until about 3 days ago, these links would open seemlessly in the relative online application (Excel, Word, Outlook, etc.). Over the past 3 days, these files are now downloading as local files to open in the client application.
Example 1: I favorite an excel spreadsheet in OneDrive or SharePoint file library so that it shows in a "Saved for later" SharePoint web part. The spreadsheet was opening in Excel online, but is now downloading a copy.
Example 2: A shared calendar has been exposed via a group Group Calendar web part. Users were able to open an entry on the group calendar and utilize "Add event to your calendar" functionality. This would open in Outlook online and allow addition of the event to a personal calendar. But now, it is downloading an ics file.
Note: I have alread checked Site Collection Features. "Open Documents in Client Applications by Default" is NOT active. I have also check File Libraries that links were coming from and verified that "Opening Documents in the Browser" is set to open in browser (opposed to opening in client application).
Very frustrating, as it seemed to happen out of nowhere, and it elimintes the collaborative features of opening in web applications.