Hi @amarch28
I got the reason why the error is thrown,
since some of column in sharepoint are multiple choice column, then dynamic content should be value not the variable itself.
To explain it better, i have created a sharepoint list with 3 columns: - 2 columns with multiple choice and 1 column with text value

Here role and name are choice column
So while populating word document , you should ensure the following

So instead of variable dynamic content you should select variable value as shown above, for role, we select role Value instead of role, for name we should select name value instead of name
So in your case, you should select value component of the variable for choice column instead of dynamic content variable itself.

Also one more thing in the step of creating file specify document extension at the end of file name (here docx)
like below

Hope it helps 🙂
Mark it as solution if it resolves your query 🙂