2- I understand we are facing activation issues on the machine. We were able to isolate the issue by following the below steps ::
--Signed out of the Office applications
Launch any application(say Word or Excel)à File à Account à Sign out à Yes
--Remove the credentials from the Credential Manager
Search for Credential Manager in the control panel à Windows credentials à Microsoft Office 15/16 à Remove the credentials
--Remove the Identities folder from the Registry
HKEY_CURRENT_USER\Software\Microsoft\Office\16.0\Common\Identity\Identities and deleted the "Identities" folder
Try again now, if it does not work go to the next step -
--Run the scripts mentioned in below by running the command prompt as an administrator
Office 2016:
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cscript.exe "%ProgramFiles(x86)%\Microsoft Office\Office16\ospp.vbs" /dstatus
cscript.exe "%ProgramFiles(x86)%\Microsoft Office\Office16\ospp.vbs" /unpkey:XXXX
Office 2015:
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cscript.exe "%ProgramFiles(x86)%\Microsoft Office\Office15\ospp.vbs" /dstatus
cscript.exe "%ProgramFiles(x86)%\Microsoft Office\Office15\ospp.vbs" /unpkey:XXXX
XXXX is the last 4 digits of the Office key that is displayed from the /dstatus switch
--Launch Office applications and activate with Office 365 credentials