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Microsoft 365 and Office | Install, redeem, activate | For home | MacOS
Processes in Microsoft 365 for setting up Office apps, redeeming product keys, and activating licenses.
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If your version of MacOS is Monterey, 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 or cannot be installed, on the link below the full details on that update are provided.
The last version of Office that will work on MacOS Monterey is 16.88, that is available on the long table on this link to all the downloadable versions from the Microsoft servers, if you have any previous version of Office installed on your Mac, that needs to be uninstalled first.
https://learn.microsoft.com/en-us/officeupdates/update-history-office-for-mac