I am having the same problem. All of a sudden I cannot open any docs from teams on my desktop. Has any solution been found other than reinstalling microsoft office?
Not exactly sure why they hid it this far, but I think I found a solution that worked for me. Once in Microsoft Teams, click on the document (Word, PPT, etc) you would like to "Open in App." From the document toolbars, go to File => Info => Open in App. This
will launch a new window where you'd be required to associate this document with a Microsoft account. Type in your MS account user name or the email you used to open the MS account and then the password associated with that account [Hint: better use the credentials
for the account currently logged in]. You will have to repeat this for all the different types of documents (Word, PPT, etc). The good news is, as long as you are logged in using this account, these credentials will be associated with the document, so you
don't have to enter the email and password every time you want to "Open in App." The only reasonable explanation why this happens is if you have multiple MS Teams accounts- one for work, school, personal, etc. The default account (eg Work) is typically set
up to automatically associate the documents with the default account, but once you have a second, etc accounts, MS Teams needs to know which account to associate the document with. That's the only logical explanation I could think of. [Note: It seems that
the procedure above won't work if you are using a work or school computer wherein you don't have admin rights. The default work or school account would "Open in App" just fine without any issues, but to associate a second account with a document, it appears
that you need admin rights.]