Thank you Adam. Just a few more details if you want to continue to work on the issue.
1. I was able to open the Manifold ODBC file smoothly in Power BI in addition to Spotfire and Access
2. I posted on Microsoft's Q&A board, the response to my issue was:
"Based on the error message, the ODBC connected to the Manifold.net GIS databas is not compatible.
I suggest you try to update the ODBC driver and check the result."
3.I was able to recreate the same original error message on a different machine running Excel 365 on Windows 10 rather than 11.
Details: "ODBC: ERROR [IM004] [Microsoft][ODBC Driver Manager] Driver's SQLAllocHandle on SQL_HANDLE_ENV failed"
4. The Access work around seems quite arduous for what should be a simple ODBC connection.
5. The OLE DB work around produced this error message.
Maybe there are some other members of this forum that would like to try to connect to Excel 365 via ODBC?
Thanks again for your efforts.