Like Bgnmarty I do not have a Microsoft Office subscription but you can install the MS Office app for free via the Apple App Store. Once it’s on your iPhone/iPad you can use it to open and view an encrypted MS Word or Excel file. You don’t need a subscription. I haven’t tried Bgnmarty’s method of saving it to “Files” as I keep my MS documents on Dropbox and the workaround works ok from there. This is how it works for me:
1) open Dropbox on my phone
2) tap the encrypted file I want
Dropbox tells me the file is password protected and opens a dialogue box asking for the password
At the same time, at the bottom of the Dropbox window is a blue button labelled “OPEN”
3) Ignore the dialogue box and tap the “OPEN” button. It asks if I want to open the file in Excel or cancel
4) Tap Excel and Excel loads and the file opens (after a while) and also has the dialogue box asking for the password
5) Enter password and the file opens.
Now, here’s the weird bit; most of the time if I try to edit the document in any way it asks me to log in to my Office365 account, (which I don’t have!) but sometimes it just lets me edit, copy, paste, enter new rows, etc.
I usually only want to read the document so not being able to edit (usually) doesn’t matter. (I can do that on my Mac with Office 2011 installed.) It’s still annoying though that iOS 14.2 has *******d up what worked perfectly well previously.