Viewing Office 365 documents using a personally licensed App

I have a user with an Office 365 Business Basic license trying to view documents with a personally licensed office account. As they are only able to view/edit them either in Browser or in Teams, they tried accessing it with their own desktop app but  it triggers a login window which immediately freezes.

Is this how it's supposed to work? Is the only way for them to work on those documents is assign them an Office 365 Business Standard license?