Thanks for the reply Maria. I was using a Windows VM to open files but I have removed Parallels from my MAC few weeks ago.
When doing open with i can see that the MAC's excel is the default but on finder and it works.
View attachment 16791
But, as you can see, in finder, Parallels remains as default application for my word and excel files so when I'm doing double click on these files It does not work since Parallels is uninstalled:
View attachment 16790
Somehow, my finder is not properly refreshed and is still pointing to Parallels.