You can certainly create/use a form in Word.
You should first save as a template. That is a different kind of file for Word, not just a designation. Templates in Microsoft Word
Word, to protect you, sets a document in a protected mode when you download it or open it from an email. There are other kinds of protection available. Those are best found using the Review Tab or the Developer Tab and the Restrict Editing button. Do not use "Filling in Forms" protection. This is a deceptive title.

If you want someone here to look at the document, you are welcome to upload a copy here. How to attach a screenshot or file in this forum. Note, for this purpose, you want to attach a file, not a screenshot.