Processes in Microsoft 365 for setting up Office apps, redeeming product keys, and activating licenses.
I recently found a get-around which works for my situation. It may be helpful to others.
I turned OFF the setting that allows for collaborative editing (see picture) and the annoying "UPLOAD BLOCKED" / "you need to be online.." stopped.
Documents still get uploaded by OneDrive from my laptop, and the updated document shows the new version as expected from my phone, or from Word and Excel Online etc., but unchecking this setting will remove the ability to collaboratively edit a document with others. A kludge, therefore, not a solution.
The dialog is launched from OneDrive's settings. Hope this helps someone.
Of course the question remains as to why the OneDrive app is happily connecting, whereas the Office apps are not.
The Microsoft Store app on my Windows 10 machine still does this (sigh).