It goes both ways.
Office is both an expectation on postings that don't actually know how to assess technical knowledge so the creator(s) of the postings just make up whatever is tough for them and also seems like it's a highly technical skill.
At the same time for fairly highly technical roles I see persons frequently adding not just Office as a skill but each of the office apps without further detail.
For me when a candidate for more high level roles advertises their office skills, I see it as a negative usually. It's not an immediate mark against, but I do end up with lower expectations on the tech I am interested in. If the role isnt oriented towards heavily doing office work, I'm not that interested in Office.
I have the same feeling about when someone lists Linux experience and mentioned Kali as their distro; unless they're a security specialist usually it means they played with Kali in a college crash course/intro network security course, and only know a few specific applications + flags to get some result for a network pen test.
Hiring is really hard because in general it's difficult to describe the domain that most jobs encompass unless it already had a narrow focus. Maybe it's not true anymore but I seem to recall if you ask 10 people what DevOps is you'll get 12 different answers, all of them disagreeing. This gets even worse for general tech roles that are basically low level system troubleshooting positions. It's hard for those doing the job to really summarize their day to day in a series of core tasks, and it's even harder for non-technical persons to even know what to ask the technical persons to build a proper posting.
I've only worked with one good Recruiter team and they are so good they convinced me that recruiters can be not just good, but excellent, and I'll defend any such blanket statements lumping all recruiters together. But it is a skill like any other, and it's not something you can do by passively writing buzzword copy on LinkedIn.
For me the article is a satire of modern hiring in general, whether highly technical or not. It's a response to an imagined dedicated question about proficiency in Word for a highly skilled position, and it's poking fun on why such a skill that should be a given now for modern professional business is given so much attention still. No one (should) be doing tons of design in Word for the business. It's fine for collaborative notepad with office365 and as a generic "okay" looking document, but just like I hope my candidates don't need help with stuff like putting their socks on or brushing their teeth, I expect they can punch out a relatively okay looking document in word and make a simple spreadsheet in excel and know that PowerPoint exists