It is an expected behavior. Do you have other versions of Office?
If you want to install and run more than one product, such as Office, Visio, Skype and etc on the same PC, there two main things that determine whether this behavior could be successful, the version of the product and the installation technology used to install the product.
What governs whether an installation scenario is supported are these two rules:
You can't install two products together that have the same version but use different installation technologies.
You can't install two products of different versions together if both products use Click-to-Run as the installation technology and those products have overlapping Office applications.
Skype for Business Basic 2016 is version 16.0, it uses MSI installation technology.
The Microsoft 365 apps is also version 16.0, but it uses C2R installation technology.
So, Skype for Business Basic 2016 and Microsoft 365 apps could not be installed together on the same PC.
More detailed information, please refer to article "Supported scenarios for installing different versions of Office, Project, and Visio on the same computer".
As a workaround, you may install one of them on virtual machine.
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