The file is now protected, so Word is correctly asking for a password or sign‑in credentials. This behavior cannot be turned off or bypassed without the correct password or account.
Based on the description, two protection types are most likely:
- Password protection on the document
If a password was set to open or modify the document:
- Word will always prompt for that password before allowing access.
- If the password is forgotten, Word cannot remove or recover it. Microsoft does not provide any service or tool to unlock such files.
- To regain access, the exact password that was set must be entered, matching upper/lowercase. Check that Caps Lock is off and try any passwords that might have been used.
- Account/rights‑managed protection (IRM or similar)
If the message mentions that upload/download requires credentials, the document may be:
- Stored in a location that requires sign‑in (for example, a cloud location), and/or
- Protected with restricted permissions so only specific accounts can open it.
In that case:
- Start Word and sign in with the same Microsoft 365 account that originally created the file or was granted access.
- When prompted, enter that account’s username and password and allow Word to save them if offered.
- If the signed‑in account does not have permission, access will be denied. Only the file owner or an administrator who controls the protection can grant or change access.
If the document is password‑protected and the password is lost, or if it is rights‑managed and the current account does not have the required rights, there is no supported method in Word to remove the protection or open the file without the correct password or credentials.
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