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Ok, then if I were you I'd probably try to find installers for older versions of Word / 365 (as, if I understood correctly, the iMac worked well with the previous versions), uninstall the new ones, install the old ones, and then prevent them from auto-updating obviously.
Another idea for general system maintenance would be running Onyx.
Might not solve your problem, but worth a shot.
salad
The Mac OS is on constant auto update as far as September. It's on Monterey 12.7.6. The machine won't happily run later versions of the OS.
iMac (Retina 5K, 27-inch, Late 2015)
3.2 GHz Quad-Core Intel Core i5, 16 GB 1867 MHz DDR3 (yes, extra RAM!)
The last thing I want to do is go through the hassle of reinstalling MacOS when I'm pretty sure it isn't the OS that's at fault.
Word for Mac is Version 16.89.1 , recently auto-updated.
I'm techie enough to have kept this machine running, and several Macs before it. This is the first time I've run aground in 30 years. But very tech savvy? No.
I've done all that stuff about experimentally removing plist preference files. It makes no difference.