The Open the Finder Selection action opens the files or folders that are currently selected in the Finder.
Select the application to open the file.
⚠️ Note that in Sonoma, if the file has the quarantine bit security feature set (which you can check with the shell command xattr -p com.apple.quarantine /path/to/file), then the system API used to open the file with an application will fail with error -128 (user canceled - presumably because the system API does not know how to ask permission). You can remove the security settings with the shell command xattr -d com.apple.quarantine /path/to/file.