Hello Zeeshan Ajmal, thank you for posting in the Microsoft Q&A community.
This error indicates that the activation server determined the specified product key could not be used because it has exceeded its unlock limit. In an organizational environment, this happens if a Volume License Key Management Services (KMS) host key or a Multiple Activation Key (MAK) has reached its predefined activation threshold. It can also occur if a Retail product key was previously used or transferred to multiple systems.
Your Global Administrator or Licensing Administrator will need to request an activation limit increase. Because Microsoft Q&A is a public forum, we do not have backend access to your tenant data to manually reset activation limits. Your administrator can verify the current MAK or KMS usage within the Microsoft 365 Admin Center or the Volume Licensing Service Center (VLSC). If the limit is exhausted, they will need to request an activation limit extension.
You can review more detailed information regarding this specific activation limit issue and best practices in the official documentation here: Error 0xC004C008 when you activate Windows.
I will follow up on this thread to ensure your issue is resolved. If this helps, please consider hitting 'Accept answer".