Dear @Candice Beck,
I understand the situation, and I’m sorry for the inconvenience this is causing, especially since the form is meant for external applicants.
If the document was protected using user authentication, the file becomes tied to Microsoft account verification. In that case, anyone opening the document will be prompted to sign in before they can access it.
In this case, it would help to clarify a few details to pinpoint exactly what is triggering the login prompt. Please could you help confirm the following?
1/ First, when users open the document, what exactly do they see on screen? If possible, could you share a screenshot of this?
2/ What the protection is currently applied? Please share a screenshot of the Restrict Editing pane (Developer/Review tab > in the Protect > Restrict Editing) and File > Info page.
Please try going to Review > Restrict Editing and click Stop Protection. Then reapply the settings by selecting “Allow only this type of editing”. After selecting restrictions, select Yes, Start Enforcing Protection. When prompted, choose either no password or a simple password if required, and make sure that user authentication or restricted access is not selected.
For more information, please refer to this. Make sure that your setting is correct: Create a form in Word that users can complete or print
3/ Where is the file currently stored and shared from? For example: downloaded and emailed as a local file or stored in OneDrive / SharePoint and shared via a link
4/ Are all users facing the issue, or only external applicants outside your organization?
5/ Can you please confirm how you are sharing the document with applicants? For example, are you sending the file directly as an attachment, or sharing it via a OneDrive/SharePoint link?
6/ If it is being shared via a link, please also check the sharing settings to confirm whether it is set to “Anyone with the link” or restricted to specific users. For reference, please refer to this Sharing files, folders, and list items
Note: Please understand that as a forum moderator, my role is to provide general guidance and troubleshooting support. I don’t have access to internal systems or backend tools, and I appreciate your understanding of these limits.
Thank you for your patience and understanding. I'm looking forward for your reply.