Excel Error – Unable to read file followed by file format or extension is not valid

Sometime, the users suddenly start getting the error- “Unable to read file.”, every time a new excel sheet is opened.
In such situation, generally, the error appears every time the user opens an existing or even new excel file.

On clicking OK, another error is displayed as below.

When clicked Ok, the file opens fine.
Following is the solution which worked for me:
  1. Search for the “XLStart” folder in machine. It can also be at multiple locations.
  2. C:UsersAppDataRoamingMicrosoftExcelXLStart

  3. Delete the file – “~$Book.xltx”. or other corrupted file as displayed in the message.
  4. Open excel again to verify that the error message is not displayed now.

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