That command flags the client to know an action requires a reboot. The “may” version checks the OS to determine if there is a pending restart but it could be from something else and not the immediately previous install for example
You can also specify reasons for the restart and check for that particular restart reason. This is done in several of the Patch Fixlets, for example, so the Action will not appear as failed for the time period after the installation and before the reboot (as the reboot may replace some files that are queried in the Relevance). In your case, in the Office Installation action you would include
action requires restart "Office365_Install"
and in the relevance for the older Office uninstall, you would include
not pending restart "Office365_Install"
This prevents any other actions’ pending restart states from intefering with your Office install/remove process.
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