We dont need to create a file for excel
Just simply use write range activity if the excel file doesnot exist it will create and write it into the file
If it is already exist then data will be overwrited on that file
After the flow run, when you try to open the file you may see the above error, and click yes. You can see your output excel without any issues.
Also, as @Robinnavinraj_S said, it’s a best practice to create excel if not present using the default option provided in the activity itself.
For the Excel application scope, need to check the Create if not exist and for Workbook write range it will create on its own if it is not present.