What is the difference between Excel Spreadsheet & Excel File during export?

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If you are trying to export multiple tables / collections into one excel file, then you should export to "Excel File". For "Excel Spreadsheet", you can only export one table / collection, i.e. one single sheet in the file.

Also, you should export your tables / collections to "Excel File" if the data more than 255 chars in a cell. If you export to "Excel Spreadsheet", data will be truncated while more than 255 chars in a cell.