Hello Muhammad Zakaa Shahzada,
Welcome to the Microsoft Community.
I understand that you are currently encountering error 1001 while using Office. Based on this error message, it appears to be related to an issue with the account on your device. Sometimes, a corrupted user account profile can cause such problems. You can try creating a new local account and check if the issue is resolved in the new user account.
Alternatively, refer to this article: Manage user accounts in Windows - Microsoft Support
If the issue is resolved in the new account, you can continue using your computer in the new account environment. To transfer your files from the old account to the new account, you can copy and paste the user folder. Refer to this article:
Troubleshoot problems signing in to Windows - Microsoft Support

For more information on error code 1001, you can refer to:
Error “Something Went Wrong [1001]” signing in to Microsoft 365 Desktop Applications - Microsoft Support
If you think this information is helpful, or if you still have any questions about it, feel free to let me know in your reply!Best RegardsEliac | Microsoft Community Support Specialist