I think TDF tries to push a wrong narrative here for their lack of engineering and funding.
Competitive products like Google Docs, WPS or Euro Office solve proprietary file format problem very nicely. Microsoft themselves had to solve that exact problem for Lotus 1-2-3.
Proprietary file formats are an industry standard. It is the lowest resistance way to deliver features and you cannot blame your competitor to have more features or hidden features in their formats. ALL strongly competitive software for the desktop workstations have proprietary formats: Autodesk, Altium, Adobe, Corel, Apple. All of them serialize their featureset on their own format since it is the easiest to do. FOSS won't get the marketshare pie by complaining about it.
LibreOffice has to provide feature parity before complaining here and TDF needs to find the funding source to hire the engineers to achieve that. They need to have convincing arguments and consistently delivered features. Otherwise it will not get adopted.
Microsoft hasn't actually selling their product on the premise of proprietary file format support. They sell it with the promise of total platform integration for every single software an office needs. You not only get an office suite but IT Admin tooling integrates with the computers and the office suite, e-mail management, SSO and licensing management software and Cloud storage all in once.
To compete with the Microsoft (or Google Workspace) you need to be selling all of that at a very competitive price. Otherwise all private companies and many government departments will continue to choose Microsoft. If a change is wanted in the government, governments need to start investing Microsoft levels of money in hiring engineers.