Don't most people use git for their latex (or even markdown) version control? All the tools that have been developed for code collaboration work really well for documents compared to messing around with word's undocumented format and binary blobs.
In academia (at least in fields that primarily use LaTeX) most people just use Overleaf.
No, git is understood as an unreasonably difficult Dropbox for most people that do not code substantially.
I use Markdown + Pandoc compiling to a .docx as a workaround, but merging changes back is manual.