Post some more details, please?
Please post the error messages that arises when you try to relocate the files using Finder.
Some background:
There's no means to move Word documents to the Word app, or Excel documents to the Excel app.
The Microsoft Office apps can open and modify and save documents, but don't store documents.
Do you have enough free storage?
Did you perchance purchase a 128 GB Mac? Because that would be one reason why the files were moved to iCloud, and not locally. If so, that was probably done because you don't have enough room to store all of your files on directly on the Mac.
To transfer files:
To transfer files from iCloud Drive to local storage, here is the general sequence:
- Open the Finder app. That app is usually at the leftmost or uppermost position of your Dock.
- Move to the local folder that you want to contain the documents. The Documents folder would be a common choice. Tap documents in the left navigation of Finder to select that folder as your current view.
- Press ⌘T to open another tab within Finder.
- In the left navigation within Finder, select iCloud Drive.
- Select the files that you want to relocate.
- Drag the files from the tab you're in to the other tab within Finder.
But if you don't have enough storage, this isn't going to work.
More Info
Get to know the Finder on your Mac - Apple Support
Organize files in folders on Mac - Apple Support