If you are a regular Google Drive user, then you may have faced a few issue with your xls files in Google drive. They don’t open with Google Sheet by default. Files with xls extension do not get an option to open them with the sheet. Instead, they are opened with Google Doc. This issue may create a headache because every time you need to create a new sheet file and then use the import feature to open the xls file in Google sheet. You can either convert Microsoft Excel files into Google sheet files or try opening excel file from doc menu.
You can see if there is an option to open the Excel file with Google sheet by open with option. If there is no such option, then use a different file manager for your Google Drive files which sorts and list document files according to their extension type.
Head over to docs.google.com and choose sheets option from left slider menu. It will show all files which can open with Google sheets including xls, ofx, and all other Excel file formats.
This method is easy and you don't need to enable convert option from your Google Drive's setting, You can try this method to Microsoft Office Excel Files to Google Sheets File Format.