Hi nsgma365,
Thanks for posting in our forum.
For the function of version history for a Word document or Excel workbook, it is only available to use when the file is saved in OneDrive or SharePoint. For your reference: View previous versions of Office files (microsoft.com)
Hence, if you want to disable this function for some specific files, kindly save them to a local position on your PC and they will no longer have the function of version history. Also, all the files created in local position will not have this function automatically as they are not connected to OneDrive or SharePoint before.
For the first concern, an easier workaround for you is to save the final edition of a document as a copy(which is a good way to prevent some kind of data leaks) and then send out this local file to others or a third party as normal.
Hope above suggestions could meet your scenario, but please feel free to post back if you need further help.
Best Regards,
Mia