A family of Microsoft word processing software products for creating web, email, and print documents.
Apparently, this is not a product limitation. I have tested on Word for iPad with version 2.111.26062623, and the banner does appear when you open a read-only recommended. The same behavior for Word for iOS and Android.
Could you please verify your document configurations? Make sure your file is not marked as Final.
Here are more few scenarios that you won’t be able to edit Word file: https://support.microsoft.com/en-US/Word/unlock-a-file-that-has-been-locked-for-editing
Lastly, I just want to remind you that the file with read-only recommended enabled is still able to edit on Word mobile. If you still cannot edit it, please provide your Word and iPadOS version.