Indeed they do. It's a farce that schools, governments use MS Office and treat the document formats as a standard, because they are too volatile to work like that. But alas, here we are. The phenomenon I describe exist and it doesn't just exist, Microsoft made it happen consciously. Windows as the de-facto standard application platform for the PC is another such achievement of theirs. Is not perfect as well, is similarly entrenched.

For what it's worth, I use LibreOffice and I even conduct my business with open source tools, as much as I can. Usually I get away with it, and for the rest, there's a Windows VM ready to go.