Thank you for your post!
I reached out to my team regarding this and we'd recommend reaching out to your licensing representative. Our documentation on shared computer activation for Microsoft 365 Apps states - shared computer activation is required for scenarios where multiple users share the same computer and the users are logging in with their own account. Normally, users can install and activate Microsoft 365 Apps only on a limited number of devices, such as 5 PCs. Using Microsoft 365 Apps with shared computer activation enabled doesn't count against that limit.
I hope this helps!
Thank you for your time and patience throughout this issue.