Office 365 apps published from Windows Server 2019/2022 hosts can't be activated

Symptoms

Office 365 apps published from Windows Server 2019 or Windows Server 2022 hosts can't be activated as the popup window prompting for password isn't displayed:

Workaround

There are four possible workarounds:

• Enable option Use RemoteApp if available as described here. Please take into account that it will resolve the issue only for users running Parallels Client for Windows
• Publish a desktop from the same host, so users will be able to activate Office 365 when they start the apps in the full desktop session
• Use Windows Server 2016 RDS host for publishing Office 365 applications
• Use Microsoft Office 2016 or other edition with VLSC activation

Resolution

Make sure you're running latest version of Parallels RAS

Apply "-runexplorer" parameter to each published Office 365 application (Office, Word, Outlook, etc) per following article:

Applying "-runexplorer" parameter to published applications