Dear @Mohammed Sajid,
Thank you for posting your question in the Microsoft Q&A forum.
Based on your description, it sounds like the user with a new laptop that was joined to Entra ID then when you checked the activation status, it showed that Windows was not activated. You’re correct that Microsoft 365 E5 includes entitlement to Windows 11 Enterprise.
Could you please help us to verify that Is the new laptop running Windows 11 Pro or Home?
Here are some suggestions you can try:
Check Activation Status:
Press Win+I to open Settings, then go to Update & Security > Activation to check your activation status.
Troubleshoot Activation:
Click on the Troubleshoot option in the Activation settings. If you recently changed hardware, select "I changed hardware on this device recently" and sign in to your Microsoft account linked to the digital license
Sign-in state
- Confirm the device is Entra ID joined and the licensed user is signed in with their UPN (e.g., ******@contoso.com), not a local account.
License assignment
- In Microsoft 365 admin, ensure the user has Microsoft 365 E5 and that the Windows Enterprise service plan is enabled. (E.g., not disabled via toggles.)
For more detail information, you can refer these links
Why can't I activate Windows?
Get help with Windows activation errors
I hope information above helpful, if you have any other questions, please feel free to reach out.
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