It should work fine. Please try our latest version/fix: v8.0.0.x. If you still find the issue kindly provide your template Excel file (exported from SSRS) here, we will check your issue son.
We also recommend you to kindly see the topic for your complete reference on how to protect worksheets:
Poornima K:
Also have query : i.e. can we have the option to disable Uprotect in protected excel file
I am not sure if this can be done. If a worksheet or Excel file is protected, surely MS Excel will enable this option (i.e. Unprotect). If you know how to do it in MS Excel, let us know with details, we will check it soon.
Poornima K:
or can we set different Unprotect Password than the Protection Password - so that the file receiver will not be able to Unprotect the same.
I don’t think this would possible. You got to specify the same password (which was given when the sheet was protected). Also, if anyone could be able to unprotect a spreadsheet with his dummy or incorrect password then what is the usage of this feature provided by MS Excel. Anyways, if you know this can be done in MS Excel, let us know with all the details and steps involved, we will check it soon.