Processes in Microsoft 365 for setting up Office apps, redeeming product keys, and activating licenses.
Had/have the same problem for my Office 2021 installation, but managed to manually update to latest version by setting Target Version in Group Policy. Another solution is to update from PowerShell:
& "C:\Program Files\Common Files\microsoft shared\ClickToRun\OfficeC2RClient.exe" /update user updatetoversion=16.0.17726.20160
But as other as pointed out the problem is still there in latest version when clicking "Update Now".
One thing to note is that in "About Excel/Word" the correct version is listed (16.0.17726.20160), BUT when clicking "About Excel/Word" the popup window shows an older version (16.0.17726.20078). Perhaps this is the culprit of the problem.