Dear @AB,
Thank you for posting your question in the Microsoft Q&A forum.
I am currently facing the same issue myself, and I truly empathize with how confusing this experience is.
Since this is a widely reported issue in recent Microsoft 365 updates, the ultimate and most comprehensive solution may be to wait for an official fix from Microsoft.
This file is the one saved on your computer, right (such as on drive C)? Because if it's saved on the cloud (for example, OneDrive), you won't be asked about that. If possible, update to the cloud and turn on AutoSave to be able to bypass this issue.
Can you take a screenshot of your file's path so I can see where the file is saved?
When file saved on OneDrive
When file saved on computer
Nevertheless, for Microsoft to permanently and quickly resolve this error, we should collectively submit reports to the official community channel Ideas · Community so that the Product Team can receive the information and release a patch sooner.
Please help me provide your file's path. Looking forward to your reply!
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