This feature request is still in the works. No additional updates are available at this time. I’ll keep you posted as I hear more.
An error occurred while saving the commentMike commented
I can see the setting in SharePoint (Settings Cog 2 to the right from your account icon in top right, "library settings", "advanced settings", "Opening Documents in the Browser" set to "Open in the client application") and it works, but it doesn't seem to have any effect on the Teams client behavior.