Hello there,
Is everyone in the domain facing this issue or any set of specific users? This seems like a profile getting corrupted.
Microsoft places a limit on the number of shared computers that a user can activate Office on in a given time period. Check the limit and also verify that shared computer activation is enabled for Microsoft 365 Apps.
If you're having problems getting shared computer activation to work when you deploy Microsoft 365 Apps to shared computers in your organization, try the following to fix the problem.
Troubleshoot issues with shared computer activation for Microsoft 365 Apps https://learn.microsoft.com/en-us/office/troubleshoot/activation/shared-computer-activation
https://learn.microsoft.com/en-us/deployoffice/troubleshoot-shared-computer-activation
-----------------------------------------------------------------------------------------------------------------------------------------------------
--If the reply is helpful, please Upvote and Accept it as an answer–