In order to resolve this problem, you need to set the Auto-Recover file location to a local path. This will force Word to use files located on a network share as temporary or scratch files.
The Auto-Recover file location points to a network share.
After an Auto-Save operation (the default interval is 10 minutes), you notice a general performance degradation when editing the document: You're working with a complex Word document. For more information about this change, read this blog post. Office 365 ProPlus is being renamed to Microsoft 365 Apps for enterprise.