Docs, sure but excel is still excel.

most grads also use C++ :)

But, in my experience enterprises are moving to office365. Ten years ago I would have bet on the Google suite but it looks like Microsoft is winning this game in the corporate world. Google gets all the private users, Microsoft the companies. So, no, sadly, MS Office is not dying. I wish it would.

What I've occasionally seen pointed out for a whole range of separate microsoft software is it's not the merits of on individual bit of software that gets enterprises to use it, it's the M365 package deal of all of them, and once you're in that ecosystem then you might as well use it. Teams is the common example where this comes up, where it's shortcomings are well known but the costs of licensing and setting up an alternative can't get over the threshold.

Graduates in which domain?

> Most grads we get only know Google docs and avoid Office

Not true of business grads - who btw are the ones who have the purchase power for enterprise wide M$ Office when they join orgs. STEM grads need to kneel and obey their purchasing decisions.