Apologies, just edited my post to say "11.1", not 10.1. I was having this issue with all Office file types up until installing the beta that came out this past Monday.
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Fix Incoming for Google Drive Issue Preventing Many File Types From Opening in Apple's Files App [Updated]
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I am on iOS 11.0.2 and Google Drive no longer opens files from the Files app into Google Drive's app, except Google's own file formats, docs, sheets and slides. Even a Word document on Google Drive now shows a preview from within the Files app.
I think you misunderstood. I have the Google Drive, OneDrive, and Dropbox apps.... they all three show up as ‘Locations’ in the new Files App. I am able to open ANY file from the Google Drive location.... what I am NOT able to do is open any MS Office files from the OneDrive or Dropbox locations... instead, it takes me to the google Drive location and asks if I want to save the file there (I don’t... but it actually doesn’t save it even if you select the option to do that). Bottom line: Google Drive itself works fine but there is something that hijacks MS Office files from OTHER locations - rendering them useless in the Files App. Side note: I am able to open files directly from the OneDrive and Dropbox APPS... just not those ‘locations’ within the Files App.
Oh, I got you. What I am saying is that since a week or so, I no longer have the behaviour that you describe. I used to have it too, and even removed GDrive for a while, but it somehow got resolved. Not sure how - either an iOS update or a GDrive update.