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I am having exactly the same problem. I upgraded my iPhone and iPad to iOS 14.2 yesterday. Today I cannot open password-protected Word files on DropBox on either device. I get the same message as was posted earlier. I can open up files without a password but not any with a password. I hope there can be a fix or workaround for this.
I did find a temporary work around. If you have MS Word installed as an app on your devices, you can open the document that is password-protected through Word via DropBox. This allows your to enter the password. I am not sure if it is the same if the issue affects Excel. I still am hoping for an update with a fix from either Apple or DropBox. Do the DropBox admins ever comment on these threads or is it just users?
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