Since the files open in the browser and a downloaded copy opens in desktop Excel, the Excel installation itself is likely functional. The failure is in the handoff from OneDrive to the desktop app for shared files.
Use this path first:
- In OneDrive, go to My Files or the shared location that contains the workbook.
- Select the file, then select More > Open > Open in app.
- Make sure the OneDrive sync client is installed and running. If it is not running, selecting Open in app starts the client.
- Make sure Files On-Demand is enabled, because Open in app requires it.
If the workbook depends on other files, sync the containing folder and add a shortcut to the shared folder in OneDrive, then try again. Unexpected behavior can occur when opening a file that depends on other files.
If the issue is only with shared OneDrive files and not downloaded local copies, another supported workaround is to sync the shared content locally and open the workbook from the synced folder instead of opening directly from the shared cloud link.
If SharePoint or OneDrive is opening files in the browser by default, check the library setting:
- Open the affected library.
- Select the Gear icon.
- Go to Library Settings > Advanced settings > Opening Documents in the Browser.
If the problem is specifically the older OneDrive sync client, the documented recommendation is to use the newer OneDrive sync client instead.
If the issue still persists after Quick Repair, Online Repair, cache clearing, Safe Mode testing, and confirming the same signed-in account, the remaining documented path is to use the browser or synced local copy as the workaround and escalate through Microsoft support for deeper investigation.