Processes in Microsoft 365 for setting up Office apps, redeeming product keys, and activating licenses.
1
Open Word.
At the top right of Word, log out of Office.
Restart (not shut down) your PC, then log back into Office, is your licence/subscription then recognized correctly.
2
If not, open Word.
Go to File - Account.
Click the 'Switch Licence' button.
Is that process able to find your Office licence/subscription to activate it on your PC?
3
If that does not resolve the problem.
Before performing this process, please log into your Microsoft account on this link (https://account.microsoft.com/services/) and check to ensure your Office licence or Microsoft 365 subscription is listed correctly on your account.
Open the Settings App (gear icon on your Start Menu)
Go to Apps, then scroll down to find Microsoft Office
Select that and choose Modify - Online Repair
That should fix any issues with your Office Installation.