Office 365 Offline Installer

You have to download the setup files first with a different xml file and then Office can be installed.

So this is a two-step process, download the installation files and then install Office - https://support.office.com/en-us/article/Overview-of-the-Office-2016-Deployment-Tool-bb5b62d9-1168-47e9-9d54-15a958acfcca 

Step 1 would look something like this, with ODT downloaded and your working in the local folder where it's kept. Create a file called downloadconfig.xml in this example -

<Configuration> 
  <Add OfficeClientEdition="64" Channel="Current"> 
    <Product ID="O365ProPlusRetail"> 
      <Language ID="en-us"/>      
    </Product> 
  </Add> 
</Configuration>

Then run 

setup.exe /download downloadconfig.xml

Office installation files are downloaded to the same folder as the tool.

Step 2 Is where your config file comes in, let's call it installconfig.xml

<Configuration>
    <Add OfficeClientEdition="64" Channel="Current">
        <Product ID="O365ProPlusRetail">
            <Language ID="en-us"/>
            <ExcludeApp ID="Groove"/>
            <ExcludeApp ID="Lync"/>
        </Product>
    </Add>
    <Updates Enabled="TRUE" Channel="Current"/>
    <Display Level="Full" AcceptEULA="TRUE"/>
    <Property Name="AUTOACTIVATE" Value="1"/>
    <Property Name="FORCEAPPSHUTDOWN" Value="TRUE"/>
    <Property Name="SharedComputerLicensing" Value="0"/>
    <Property Name="PinIconsToTaskbar" Value="FALSE"/>
</Configuration>

then run

setup.exe /configure installconfig.xml

Office is installed accordingly from the downloaded files in step 1 and configured with the options you have specified here.