On click of "Edit Document" should open excel but it generates some incompatibility error as Follows

[Tushar Mohite]

ExcelIssue.png

[Nic Brough -Adaptavist-]

The Office package installed on the user's computer is not capable of reading the files that have been uploaded into Confluence.

You'll need to fix the Office installation on the client side.  All Confluence does with files is hand them over to the browser, it doesn't do anything "clever" with them that might break it in this way.