Processes in Microsoft 365 for setting up Office apps, redeeming product keys, and activating licenses.
This problem is caused by the July 13 update that was released that has blocked previous unsupported versions of Office or Office on older versions of MacOS, the full details on that update are available on this link.
If you have MacOS Tahoe and a subscription to Microsoft 365, you are affected by a bug in that update, many people are reporting this since July 13, the best option is to completely uninstall the Office apps from your Mac, then follow the steps at this link to remove the Office license.
Then, restart your Mac and sign in to your Microsoft account online ( https://account.microsoft.com/services/ ) to reinstall the Office apps.