Converted MS Word table to Adobe and Accessibility Issues/Reading Order

You're correct, drag/drop the content ( <P> + label text + <Form> ) out of each cell of the table. Then drop it where it needs to be in the tag reading order.

Option:  Rebuild the form in Adobe InDesign and install a plug-in named Made To Tag, which has a great little feature where you can identify that the table should not be tagged and only the cell contents are tagged. There is a slight chance that the original Word/forms (ha ha, they're really not forms!!!) can be imported into InDesign and the table structure and content be retained, so the rebuilding part might not be so time consuming.

However, some types of forms should remain in the <Table> tag. An example: an order form in a table-matrix of repeating form fields for quantity, item, price, and amount. But you'll need to follow the required accessibility for tables, as well as for the form fields themselves. Here's something similar:

But the best solution is to never use MS Word to create an accessible form, and never use layout tables (unless you're in InDesign and have the plug-in that's mentioned above). We teach how to build accessible forms with Adobe InDesign, which is a better option for design, layout, control of the form fields, and accessibility.

Hope this helps.