Hi @slecca2,
A word file has a specific structure in OpenXml, it describes how objects (Settings, pages, font, etc...) are organized and stored. Merging two word files means knowing that structure, extracting object and data to creating a new structure in a new file. What you are doing is just adding two files content (structure) into one new container (file). It can't work.
There is no standard action to achive what you want to do, only third party connector offer such service. You can try the Encodian "Merge word documents": Merging Word Document Content with Power Automate — Encodian
Encodian propose a free subcription that could be enough if you use it less than 50 times a month.
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