From Configuration
Try to move the Co-Management slider for Office Click-to-Run Apps. Starting 1906, if you have controlled this behavior to a subset of collection, you need to add the device to the respective collection.
Once the policies are processed, you may need a restart of the “Microsoft Office Click-to-Run Service” service. You will notice Office is no longer managed by ConfigMgr which clears the yellow background.
It is now updated via Office CDN.
On the device registry, it sets the OfficeMgmtCOM value to 0 in the following registry keys:
Computer\HKEY_LOCAL_MACHINE\SOFTWARE\Policies\Microsoft\office\16.0\Common\officeupdate
Computer\HKEY_LOCAL_MACHINE\SOFTWARE\WOW6432Node\Policies\Microsoft\office\16.0\Common\officeupdate
Here is the reference: https://techcommunity.microsoft.com/t5/core-infrastructure-and-security/co-management-of-office-click-to-run-apps-workload/ba-p/871090