WindowServer repeatedly crashing while using MS Office Apps

I regularly use MS apps Word, Powerpoint, Excel and Teams on my Macbook Pro 2018 (Intel). Recently (not sure if after the Monterey update), while some of these apps are open, the whole system crashes and it goes to my lockscreen. It also opens the same set of apps that I usually quit after use.

I uninstalled and reinstalled all the MS apps, and the issue is still there. I need to use MS apps regularly at my college.

Attaching the text from the Problem Report here. Please help.

-------------------------------------
Translated Report (Full Report Below)
-------------------------------------

Process:               WindowServer [38072]
Path:                  /System/Library/PrivateFrameworks/SkyLight.framework/Versions/A/Resources/WindowServer
Identifier:            WindowServer
Version:               ???
Code Type:             X86-64 (Native)
Parent Process:        launchd [1]
User ID:               88

Date/Time:             2021-11-24 14:46:31.9149 +0530
OS Version:            macOS 12.0.1 (21A559)
Report Version:        12
Bridge OS Version:     6.0 (19P548)
Anonymous UUID:        80F9947D-2B10-9217-FAA1-060A6F3B089D

Sleep/Wake UUID:       72E63296-5995-477B-BC70-47C26079E985

Time Awake Since Boot: 210000 seconds
Time Since Wake:       3369 seconds

System Integrity Protection: enabled

Crashed Thread:        0  Dispatch queue: com.apple.main-thread

Exception Type:        EXC_CRASH (SIGABRT)
Exception Codes:       0x0000000000000000, 0x0000000000000000
Exception Note:        EXC_CORPSE_NOTIFY

Application Specific Information:
Assertion failed: (clippedNeverClip || status_bar_arrangement_first_clipped_never_clip_item(items) == nullptr), function reassign_status_items_to_buckets_if_needed, file SystemStatusBar.mm, line 937.
StartTime:2021-11-24 13:52:40
GPU:IG
MetalDevice for accelerator(0x10e33): 0x7f9cef736798 (MTLDevice: 0x7f9cf07f1000)
IOService:/AppleACPIPlatformExpert/PCI0@0/AppleACPIPCI/IGPU@2/AppleIntelFramebuffer@0
boot-args:


Thread 0 Crashed::  Dispatch queue: com.apple.main-thread
0   libsystem_kernel.dylib              0x7ff817a17112 __pthread_kill + 10
1   libsystem_pthread.dylib             0x7ff817a4d233 pthread_kill + 263
2   libsystem_c.dylib                   0x7ff817999d10 abort + 123
3   libsystem_c.dylib                   0x7ff8179990be __assert_rtn + 314
4   SkyLight                            0x7ff81cbd262c reassign_status_items_to_buckets_if_needed(StatusBarBucket*, int, x_list_struct*, SystemStatusBarItem_t*, x_list_struct**, x_list_struct**) + 973
5   SkyLight                            0x7ff81cbd06f8 RepositionAndClipStatusItemList(PKGManagedMenuSpace*, bool) + 1870
6   SkyLight                            0x7ff81cbd333b PKGSystemStatusBarFullRebuild + 174
7   SkyLight                            0x7ff81cc606ce run_timer_pass + 502
8   SkyLight                            0x7ff81cc9ae2d CGXRunOneServicesPass + 218
9   SkyLight                            0x7ff81cc9c1a5 server_loop + 91
10  SkyLight                            0x7ff81cc9be98 SLXServer + 1707
11  WindowServer                           0x10fc353a8 0x10fc32000 + 13224
12  dyld                                   0x114e814fe start + 462

Thread 1:: com.apple.coreanimation.render-server
0   libsystem_kernel.dylib              0x7ff817a10aba mach_msg_trap + 10
1   libsystem_kernel.dylib              0x7ff817a10e2b mach_msg + 59
2   QuartzCore                          0x7ff81ebc0678 CA::Render::Server::server_thread(void*) + 493
3   QuartzCore                          0x7ff81ebc047d thread_fun(void*) + 25
4   libsystem_pthread.dylib             0x7ff817a4d514 _pthread_start + 125
5   libsystem_pthread.dylib             0x7ff817a4902f thread_start + 15

Thread 2::  Dispatch queue: com.apple.VirtualDisplayListener
0   libsystem_kernel.dylib              0x7ff817a10aba mach_msg_trap + 10
1   libsystem_kernel.dylib              0x7ff817a10e2b mach_msg + 59
2   libsystem_kernel.dylib              0x7ff817a19059 mach_msg_server_once + 257
3   CoreDisplay                         0x7ff818dd4172 -[VirtualDisplayListener rx] + 77
4   libdispatch.dylib                   0x7ff817895ad8 _dispatch_call_block_and_release + 12
5   libdispatch.dylib                   0x7ff817896cc9 _dispatch_client_callout + 8
6   libdispatch.dylib                   0x7ff81789ccee _dispatch_lane_serial_drain + 696
7   libdispatch.dylib                   0x7ff81789d7c8 _dispatch_lane_invoke + 366
8   libdispatch.dylib                   0x7ff8178a77e1 _dispatch_workloop_worker_thread + 758
9   libsystem_pthread.dylib             0x7ff817a4a08f _pthread_wqthread + 326
10  libsystem_pthread.dylib             0x7ff817a4901b start_wqthread + 15

Thread 3:: IOHIDService - RunLoopCompatibilityThread
0   libsystem_kernel.dylib              0x7ff817a10aba mach_msg_trap + 10
1   libsystem_kernel.dylib              0x7ff817a10e2b mach_msg + 59
2   CoreFoundation                      0x7ff817b14a42 __CFRunLoopServiceMachPort + 319
3   CoreFoundation                      0x7ff817b1311b __CFRunLoopRun + 1325
4   CoreFoundation                      0x7ff817b1252d CFRunLoopRunSpecific + 563
5   CoreFoundation                      0x7ff817b9a57e CFRunLoopRun + 40
6   IOKit                               0x7ff81a44082d __IOHIDServiceRunLoopCompatibilityThread + 306
7   libsystem_pthread.dylib             0x7ff817a4d514 _pthread_start + 125
8   libsystem_pthread.dylib             0x7ff817a4902f thread_start + 15

Thread 4:
0   libsystem_kernel.dylib              0x7ff817a10aba mach_msg_trap + 10
1   libsystem_kernel.dylib              0x7ff817a10e2b mach_msg + 59
2   CoreFoundation                      0x7ff817b14a42 __CFRunLoopServiceMachPort + 319
3   CoreFoundation                      0x7ff817b1311b __CFRunLoopRun + 1325
4   CoreFoundation                      0x7ff817b1252d CFRunLoopRunSpecific + 563
5   CoreFoundation                      0x7ff817b9a57e CFRunLoopRun + 40
6   AppleHIDALS                            0x10fec1406 void* std::__1::__thread_proxy<std::__1::tuple<std::__1::unique_ptr<std::__1::__thread_struct, std::__1::default_delete<std::__1::__thread_struct> >, AppleUSBALS::scheduleWithDispatchQueue(dispatch_queue_s*)::$_0> >(void*) + 222
7   libsystem_pthread.dylib             0x7ff817a4d514 _pthread_start + 125
8   libsystem_pthread.dylib             0x7ff817a4902f thread_start + 15

Thread 5:
0   libsystem_kernel.dylib              0x7ff817a10aba mach_msg_trap + 10
1   libsystem_kernel.dylib              0x7ff817a10e2b mach_msg + 59
2   CoreFoundation                      0x7ff817b14a42 __CFRunLoopServiceMachPort + 319
3   CoreFoundation                      0x7ff817b1311b __CFRunLoopRun + 1325
4   CoreFoundation                      0x7ff817b1252d CFRunLoopRunSpecific + 563
5   CoreFoundation                      0x7ff817b9a57e CFRunLoopRun + 40
6   AppleHIDALS                            0x10fec1406 void* std::__1::__thread_proxy<std::__1::tuple<std::__1::unique_ptr<std::__1::__thread_struct, std::__1::default_delete<std::__1::__thread_struct> >, AppleUSBALS::scheduleWithDispatchQueue(dispatch_queue_s*)::$_0> >(void*) + 222
7   libsystem_pthread.dylib             0x7ff817a4d514 _pthread_start + 125
8   libsystem_pthread.dylib             0x7ff817a4902f thread_start + 15

Thread 6:
0   libsystem_kernel.dylib              0x7ff817a10aba mach_msg_trap + 10
1   libsystem_kernel.dylib              0x7ff817a10e2b mach_msg + 59
2   CoreDisplay                         0x7ff818eadd61 CoreDisplay::Mach::Server::Start() + 147
3   CoreDisplay                         0x7ff818eadec7 void* std::__1::__thread_proxy<std::__1::tuple<std::__1::unique_ptr<std::__1::__thread_struct, std::__1::default_delete<std::__1::__thread_struct> >, void (CoreDisplay::Mach::Server::*)(), CoreDisplay::Mach::Server*> >(void*) + 59
4   libsystem_pthread.dylib             0x7ff817a4d514 _pthread_start + 125
5   libsystem_pthread.dylib             0x7ff817a4902f thread_start + 15

Thread 7:
0   libsystem_pthread.dylib             0x7ff817a4900c start_wqthread + 0

Thread 8:
0   libsystem_pthread.dylib             0x7ff817a4900c start_wqthread + 0

Thread 9:
0   libsystem_pthread.dylib             0x7ff817a4900c start_wqthread + 0

Thread 10:: com.apple.windowserver.root_queue
0   libsystem_kernel.dylib              0x7ff817a10b0e semaphore_timedwait_trap + 10
1   libdispatch.dylib                   0x7ff8178971f2 _dispatch_sema4_timedwait + 72
2   libdispatch.dylib                   0x7ff81789761f _dispatch_semaphore_wait_slow + 58
3   libdispatch.dylib                   0x7ff8178a61e7 _dispatch_worker_thread + 308
4   libsystem_pthread.dylib             0x7ff817a4d514 _pthread_start + 125
5   libsystem_pthread.dylib             0x7ff817a4902f thread_start + 15

Thread 11:: com.apple.windowserver.root_queue
0   libsystem_kernel.dylib              0x7ff817a10b0e semaphore_timedwait_trap + 10
1   libdispatch.dylib                   0x7ff8178971f2 _dispatch_sema4_timedwait + 72
2   libdispatch.dylib                   0x7ff81789761f _dispatch_semaphore_wait_slow + 58
3   libdispatch.dylib                   0x7ff8178a61e7 _dispatch_worker_thread + 308
4   libsystem_pthread.dylib             0x7ff817a4d514 _pthread_start + 125
5   libsystem_pthread.dylib             0x7ff817a4902f thread_start + 15

Thread 12:
0   libsystem_pthread.dylib             0x7ff817a4900c start_wqthread + 0

Thread 13:: com.apple.windowserver.root_queue
0   libsystem_kernel.dylib              0x7ff817a10b0e semaphore_timedwait_trap + 10
1   libdispatch.dylib                   0x7ff8178971f2 _dispatch_sema4_timedwait + 72
2   libdispatch.dylib                   0x7ff81789761f _dispatch_semaphore_wait_slow + 58
3   libdispatch.dylib                   0x7ff8178a61e7 _dispatch_worker_thread + 308
4   libsystem_pthread.dylib             0x7ff817a4d514 _pthread_start + 125
5   libsystem_pthread.dylib             0x7ff817a4902f thread_start + 15


Thread 0 crashed with X86 Thread State (64-bit):
  rax: 0x0000000000000000  rbx: 0x0000000114ef4600  rcx: 0x00007ff7b02bccf8  rdx: 0x0000000000000000
  rdi: 0x0000000000000103  rsi: 0x0000000000000006  rbp: 0x00007ff7b02bcd20  rsp: 0x00007ff7b02bccf8
   r8: 0x00000000000003a9   r9: 0xcccccccccccccccd  r10: 0x0000000000000000  r11: 0x0000000000000246
  r12: 0x0000000000000103  r13: 0x000000010ff20000  r14: 0x0000000000000006  r15: 0x0000000000000016
  rip: 0x00007ff817a17112  rfl: 0x0000000000000246  cr2: 0x00007ff8592637d0
  
Logical CPU:     0
Error Code:      0x02000148 
Trap Number:     133




Model: MacBookPro15,2, BootROM 1715.40.15.0.0 (iBridge: 19.16.10548.0.0,0), 4 processors, Quad-Core Intel Core i5, 2.3 GHz, 8 GB, SMC 
Graphics: Intel Iris Plus Graphics 655, Intel Iris Plus Graphics 655, Built-In
Display: Color LCD, 2560 x 1600 Retina, Main, MirrorOff, Online
Memory Module: BANK 0/ChannelA-DIMM0, 4 GB, LPDDR3, 2133 MHz, Samsung, K4E6E304EC-EGCG
Memory Module: BANK 2/ChannelB-DIMM0, 4 GB, LPDDR3, 2133 MHz, Samsung, K4E6E304EC-EGCG
AirPort: spairport_wireless_card_type_wifi (0x14E4, 0x7BF), wl0: Jul 12 2021 19:26:30 version 9.30.464.0.32.5.76 FWID 01-45ccefcd
Bluetooth: Version (null), 0 services, 0 devices, 0 incoming serial ports
Network Service: Wi-Fi, AirPort, en0
USB Device: USB31Bus
USB Device: T2Bus
USB Device: Touch Bar Backlight
USB Device: Touch Bar Display
USB Device: Apple Internal Keyboard / Trackpad
USB Device: Headset
USB Device: Ambient Light Sensor
USB Device: FaceTime HD Camera (Built-in)
USB Device: Apple T2 Controller
Thunderbolt Bus: MacBook Pro, Apple Inc., 47.5
Thunderbolt Bus: MacBook Pro, Apple Inc., 47.5

The crash report shows that WindowServer crashed in the middle of a fairly benign operation. This looks at its root like a macOS bug, even though according to your explanation it might be primarily triggered by a third-party app.

Monterey is a new major OS release and these always have bugs that are often fixed in subsequent minor updates.

For now, are you running the very latest versions of all of your MS apps?

I suspect that you use MS apps all the time and so there may be a possibility of false correlation. To rule this out, can you try actively, heavily using your machine for a full day without opening any MS apps at all to see if the problem goes away?