Processes in Microsoft 365 for setting up Office apps, redeeming product keys, and activating licenses.
The fact that the seller needs to provide you with login credentials is a red flag. It means they are reselling volume licenses. Legitimate retail office products will ask you to link it to your own Microsoft account, and then it is yours, only yours.
I think you have the Pro Plus product. The Pro Plus product is not designed for home users. It is a volume license, which means it is intended for organizations, not individuals. These licenses are managed by an organization’s IT department and are tied to a contract with Microsoft. Because of how volume licensing works, activation may depend on things like installation limits or periodic validation through an organization’s KMS server. Those processes require IT support from the organization that owns the license. That is why these licenses are not meant to be sold to individuals. Home users typically do not have access to the IT infrastructure needed to manage or maintain them. Unfortunately, some third-party sellers offer these licenses at very low prices. They may seem like a good deal, but they are often resold in ways that violate the licensing terms. Most buyers are not aware of these details until problems occur. I am afraid you would have to dispute this with seller as you have been scammed.