Hello, I click on a DOCX file and I get a message to type the password. If I click on cancel, the file is still opened, though the characters are encoded. I think it would make more sense if LO just didn't do anything after clicking on Cancel when asked about the password. The file shouldn't be opened. In fact, LO should close if it wasn't open before. I'd need to find out if this behaviour affects all Office, Office 2007 and Open Documents formats. Thanks for your attention.
Yes, that's a known problem. *** This bug has been marked as a duplicate of bug 89320 ***