I meant to reply sooner to this, but I was experimenting with options.
The way our extension is coded, it should work inside the Office file pickers, but it is not. You can see that other apps do, like Wordpad. We are looking to see if there are ways to overcome this.
In the meantime, you can try the following:
When you have the file picker open in the Office app, make sure you select All Files from the extension filter:
Then, you can see the .cloud and .cloudf placeholders. If you want to open a docx placeholder, for example, you can then right-click-> open. This should sync the file down and then try to open it with Word.
Word will throw an error stating that it can’t open it because a dialog box is open (its the file picker we are using right now):
But, if you dismiss that pop-up, you will find that the docx is now synced and can be opened.
The same principle applies to .cloudf files (folders). This method is not ideal, but it can be used as a workaround for now.