Processes in Microsoft 365 for setting up Office apps, redeeming product keys, and activating licenses.
Hi all, I think I found a solve. Assuming you have downloaded your MS applications via the Mac App Store - delete these (drag from Finder > Applications to trash, then empty trash). Go into the MS account online and navigate to subscriptions, download the installer and reinstall via that path. Opened and it brought up the activation window, logged in and it worked this time.
My theory is they are now trying to force some pair between App Store download + Apple ID and no longer want to support the path of Mac App Store Download > login with existing 365 account.