Minimize button grayed out on Word for Mac (Version 16.65)

Try and boot in the safe mode to see if the isssues persist. If the issues don’t persist they;re caused by an external piece of software or something in word itself

Start up your Mac with Apple silicon in safe mode

1. On your Mac, choose Apple menu  > Shut Down.
2. Wait for your Mac to shut down completely. A Mac is completely shut down when the screen is black and any lights (including in the Touch Bar) are off.
3. Press and hold the power button on your Mac until “Loading startup options” appears.
4. Select a volume.
5. Press and hold the Shift key, then click Continue in Safe Mode.
6. The computer restarts automatically. When the login window appears, you should see “Safe Boot” in the menu bar.

Start up your Intel-based Mac in safe mode

1. Turn on or restart your Mac, then immediately press and hold the Shift key until you see the login window.
2. Log in to your Mac.
3. You might be asked to log in again.
4. On either the first or second login window, you should see “Safe Boot” in the menu bar.

If the issues persist you want to remove the word application and install it again to see if the issues persist