Hi, I'm John! I will help you with this.
Yes, a Microsoft 365 product key is region-locked for activation to the country where it was purchased.
You can try using a VPN to temporarily set your location to the US and then redeem your product key at https://setup.office.com
If it still doesn’t activate, I recommend contacting the original retailer where the laptop was purchased. They might be able to provide a region-appropriate key or issue a replacement or refund.