Processes in Microsoft 365 for setting up Office apps, redeeming product keys, and activating licenses.
Your screenshot seems to indicate a free version of Office is installed.
If you purchased a subscription to Microsoft 365, what version did you purchase, is that the Basic, Personal or Family subscription.
The Basic subscription only includes 100GB of OneDrive storage and using the free Office apps in a web browser, it does not include installing the Office apps locally on your PC, it is only the Personal or Family subscriptions that include installing and using the Office apps locally on your PC..
If you purchased a Microsoft 365 Personal or Family subscription, did you download and install the Office apps from your Microsoft account on this link.