SharePoint 2007: Configure the Document Library Document Opening before the migratation to SP Online
When you are working on migration project from SP2007 (it's the end of it's life, but still exist in production), you have to fight with the file opening settings to support the Office Web Application solution.
SP 2007 is not basically supporting the Office Web Apps but there is a tip to know to support that after migration without change the settings manually in SPO for each doclib.
From the SharePoint 2007 site
You can change that settings with the SharePoint 2007 web page, via the option: