I have this too, including with small (<20 KB), newly-created Excel files. I routinely get the spinning beachball with simple operations, like selecting a cell, even if the cell is values-only (no formulas). I've experienced this for years, on a variety of Macs, with a variety of Excel versions. I've never experienced this when using Excel on a PC.
I'm using the latest versions of Monterey (12.6.4) and Excel (16.71) as of the date of this post, on a 2019 i9 iMac with 128 GB RAM.
Running it in a RAM disk seems to reduce the duration of the spinning beachballs somewhat, but doesn't make them go away.