Update: The theory that this is (at least solely) due to the version of Microsoft 365 seems to be false based on the latest test. (See Peter Nys's response below as well as my reply)
Recently with Microsoft 365 Word many people I interact with have experienced extreme slowness when interacting with documents stored on a WebDav server, track changes is on, and there are a number of edits.
We have seen this from: Version 2302 (Build 16130.20306) to latest Version 2304 (Build 16327.20214) (at time of writing)
Those on the Monthly Enterprise Channel do not experience this issue.
If track changes is not on, the issue is not experience.
If you aren't reading the file from a WebDav server the issue is not experienced.
We have tested two different WebDav servers across different server infrastructure and none of them have resolved the issue.
All known issue client have been on Windows (with confirmed cases on Windows 10 and 11)
Meeting the above requirements (right version of the client software, webdav server, and track changes) don't immediately lead to the issue occurring for everyone but for those it is occurring for removing one of those things resolves the issue.
We have tried many different documents. Large ones, small ones, etc.
We have tried clearing the cache of Office and that has also not helped.
The slowness does not only occur (or even usually occur) when interactions with the WebDav server are expected (when saving or reading the file). Simply scrolling through the file can lead to the software locking up for tens of seconds at a time. Typing in the document also doesn't show up on the screen for seconds.
No error messages are thrown, simply slowness and the application locking up.