TextEdit is not Microsoft Word. They are completely different -- TextEdit is an Apple application and is a very basic word processor. Apple also has the free Pages app that is more powerfull.
Microsoft does not provide free software with new Macs (or free upgrades between major versions of their Office products unless you subscribe to Microsoft 365).
If you want to use Microsoft Word, you can either subscribe to Microsoft 365 or you can make a one-time purchase. See: https://www.microsoft.com/en-us/microsoft-365/mac/microsoft-365-for-mac
Other options:
Use the free and very good Libre Office https://www.libreoffice.org/
or the free Microsoft Office on the web: https://products.office.com/en-us/free-office-online-for-the-web
or Google Docs: https://www.google.com/docs/about/
or Apple’s Pages and Numbers