Processes in Microsoft 365 for setting up Office apps, redeeming product keys, and activating licenses.
If your version of MacOS is Big Sur (11.7.11), then the error you are seeing is caused by an update on the 13th of July, many people are seeing the exact same error, if you are unable to upgrade your MacOS to a newer compatible version, your Office apps will go into Read Only mode, on the link below the full details on that update are provided.
The old workaround of installing an older version of Office no longer works after that update they released, the only options now would be to use the free online version of the Office apps in a web browser, or install the free version of LibreOffice, which is compatible with Big Sur and all your previously created Office documents.