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Hi Dikesh Darge (Dikesh),
Because we find someone encountered a very similar situation with you in this thread and he fixed it by reset Office activation state. So we first suggest you reset Office activation state to check whether it works:
1,To remove the Office 365 license, run two cscript command lines. The command lines are:
A. Run C:\program files <x86>\Microsoft office\office16>cscript ospp.vbs /dstatus .
B.Run C:\program files <x86>\Microsoft office\office16> cscript ospp.vbs /unpkey:“Last 5 of installed product key”
- Remove cached identities in HKCU registry:
A. In the Registry Editor navigate to HKCU\Software\Microsoft\Office\16.0\Common\Identity\Identities and remove all of the identities under \Identities.
3. Remove the stored Credentials in the Credential Manager:
A. Open Control Panel > Credential Manager. Remove all Windows credentials listed for Office16.
B. To remove the Credential Click on the Drop down arrow and choose Remove from Vault
More information about how to reset office activation-state you can refer to this article.
If it doesn't work, the root cause may be related to the Windows server environment rather than the Office activation state.
You can check whether your account has connected to Windows, to check it by this way :
Click Windows icon (in the left bottom)>Settings>Emails and Accounts
If there are accounts in there, disconnect it and sign in again to confirm the results.
In addition, just like a reply in that thread and I also searched in more information link. It****may be a local domain issue. So we suggest you change a local user profile. If it only works when the user changed to the local user profile, we can confirm this issue is related to the Windows server and we can help you redirect to the right category.
Regards,
Nina