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

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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:

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

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