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Interesting. Microsoft is using Google Groups for signup process.

Is there no Groups equivalent in MS ecosystem?

IIRC the play store requires this for beta signups.
It's due to being in beta - the Google Group is how you whitelist specific individual's Google accounts to be able to get the beta app on their Android device. For people joining the iOS beta, they sign up via Testflight.
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Won't this send loading times through the roof and increase RAM requirements greatly? I never use powerpoint on a phone; occasionally, I have to look at word/excel docs. How does forcing a user to keep installed things which he may not use improve his experience?

That aside, I like having separate windows in my android changer-thingy for different documents. Won't this ruin that? I'm regularly switching between a word doc and an excel sheet; now, I suspect I'll have to navigate some clumsy MS menu rather than doing what I do for all my other apps.

The Office app actually opens each document in a new activity, meaning you can open a Word document and an Excel sheet and switch between them in the app switcher just fine.