To anyone experiencing this on Tahoe: Please report to Microsoft using Help> Feedback in the Excel menu. Compatibility issues are often present when early releases of new operating systems are adopted.
If expeiencing the problem on any other version of macOS please start a new thread stating all particulars.
FWIW I'm running 16.102.1 on Sequoia 13.7.1 without any such issue. The Format> Cells dialog launches instantly in any workbook file.