When you see the error message 'Word could not create the work file. Check the temp environment variable.' on your Mac, the first thing you need to do is to check the version of your Word for Mac. If it is outdated, update it now, then try to create the file again.
If it is up to date, you can try to create the temp folder using Command Prompt.
Step 1: Click the search icon in the taskbar and type in Command Prompt in the search box.
Step 2: Right-click Command Prompt and choose Run as administrator. (Or you can press Win + Shift + Enter to open it with administrator privileges.)
Step 3: Type in 'Cd /d %USERPROFILE%\Appdata\Local\Microsoft\Windows\INETCACHE>Md content.word'.
After that, check whether you can create the work file successfully.