Annoying Word pop up in Microsoft 365

Hi

We are using Microsoft 365 and documents are configured to open in the browser in all our libraries

When a user clicks the New button and selects the Document content type - Word online begins to open and then we get this popup:

Click Yes and the doc opens fine

This is obviously a really poor user experience and this is just using the default content type in a normal library

We've created custom content types and the same thing happens - every time

Why is this happening and what can we do to make it go away?

Thanks