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Hi, Stephen Foster
This sounds less like a Word/Excel file problem and more like Office 365 and the Dropbox sync/Office integration not handing the file over properly. Dropbox also notes that Office files need to be properly synced locally, and for newer Dropbox/Office co-authoring features, Microsoft Office needs to be version 2311 or later.
Besides the solutions provided by the Q&A Assist, here are some suggestions you can try:
First, check that Dropbox is actually running and fully synced. Click the Dropbox icon near the clock and make sure it does not say syncing, paused, or offline. If the file has an online-only cloud icon, right-click the file or folder in Dropbox and choose Make available offline, then try opening it again. Office can fail if it is trying to open a placeholder file instead of a fully downloaded copy.
If that does not help, open the Dropbox desktop app settings and look for the option to show Dropbox as a save/open location in Microsoft Office. Turn it on, sign in if asked, then restart Word and Excel. This adds Dropbox directly as a “Place” inside Office, which can avoid the handoff problem between File Explorer and Office.
If the files open but show security warnings or refuse editing, only if you fully trust that Dropbox folder, add your Dropbox folder as a Trusted Location in Word/Excel under File > Options > Trust Center > Trust Center Settings > Trusted Locations. Do not do this for folders containing unknown or shared files.
It is also recommended that you temporarily test with antivirus or ransomware protection disabled, or add Dropbox, Word, and Excel to its allowed apps list. Security software can cause Office files to open incorrectly or as read-only.
Thank you for your patience in reading, I hope this information has been helpful to you.
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