1 - That could be an optional component, behind a "Install Python for Excel " button.
2 - You need to install Python to code in Python anyway, with or without Excel.
3 - Bloat is the norm nowadays and I'm not sure whether users care. A clean Visual Studio install takes 10 GB of disk or something. Office itself takes several GB as well.
4 - Not sure why Docker would be needed. Using Python in Windows is fine nowadays. There are caveats with libs that are very reliant on POSIX (Airflow comes to mind,) but, again, if you control your distro you can limit the libs users can install.