Resolved! Apple has released a fix!
We recently posted IT148224 on the M365 Service Health Dashboard to let customers know there’s a known issue whereby users may be unable to install Microsoft Word on iOS using the Intune service. This issue is not limited to Intune; there’s other MDM providers affected. We have reached out to Apple and their engineers are looking into it.
In the interim, if your end users mention that they’ve got a gray Microsoft Word icon on their iOS device, that could indicate a failed installation. As a workaround, if you allow access to the Apple store, your end users can install Microsoft Word directly from the Apple store.
We’ll update this post when Apple resolves this known MDM issue. Again, please be sure to share the workaround with your helpdesk teams.