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I have set up SharePoint to set up alerts when Excel Spreadsheets have been edited, but all the user that receive instant alerts every time any change has been made. enter image description here

These are the settings I have in place. I have tried setting the alerts for a single document and entire libraries. The users still receive multiple emails instead of a daily summary. I am unsure how to stop the multiple emails and only alert users with a daily summary. Any suggestions are welcome.

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I tested with the same settings, the Email do only get sent once a day. No multiple emails are received. Have you test with alerts on other lists/libraries? You may try to recreate a new one and test again.

And just a notice, the alert does not work at file level, it works at list/library level. Which means you cannot make it only work on a specific file. All files in the library will trigger the alert to send email.

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First, You can create an alert for a specific document to receive an email when the document changed.

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Regarding, your issue. it's actually strange behavior, so I suggest to check all alerts that have been created for this library/list as mentioned at SharePoint 2016 Get All User Alerts By List Name, and make sure that there is no alert that set to trigger immediately.

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