Processes in Microsoft 365 for setting up Office apps, redeeming product keys, and activating licenses.
Hi Corey,
I'm very sorry for the inconveniences this issue has caused. As we couldn't reproduce the issue from our side, this issue shouldn't be caused by the latest update. I'd suggest try using clean boot to check if this issue is caused by other applications.
If the issue persists after you performed a clean boot, please check if the users used the same source in their corporate domain. If so, please try installing Office from the Office 365 portal to see if the issue could be fixed. If so, I'd suggest replacing the installation source in your domain.
Meanwhile, please also check if the Office applications that have this issue are of the same version. If so, please go to File Account and capture a screenshot of the version information for further assistance.
For your last concern, if your company doesn't need to monitor the activities of the Office file that are in the Most Recently Used list, you may feel free to disable this feature for all of your company member. For details, please refer to the following article: Data collected by the agent for Office Telemetry Dashboard
Best Regards,
Nathan