So do you no know why they're calling it Office 365 instead of Office 2021, and why it Microsoft is blocking it? This is standard for Microsoft, right, a step in opening any software?
Office 365 (Microsoft 365) is a subscription.
Office 2021 is a one-time purchase. They are different products.
If you bought Office 2021 but it shows as Office 365, that is not correct.
You can still try this first.
Uninstall all Office apps completely from your PC.
Restart the computer.
Then go to https://account.microsoft.com/services
If you see Office Home & Business 2021 there, install it directly from that page.
If the seller provided a separate installation link or guide, do not use it unless the license is showing in your Microsoft account.
Do you currently see Office 2021 listed under your Services & Subscriptions page?