Yes, MS is doing everything it can to "encourage" users to "upgrade" <sneer> to Office 365. Lets take your issues in reverse order.
The no phone activation "error" is a "known issue" that MS is doing nothing, or at least the absolute minimum about. Phone activation is allowed, you just need to know the secret. Here it is:
2017 01 20- "Telephone activation is no longer supported for your product" error when activating Office
MS oops'd, and just hasn't bothered to fix the problem in much too long. A MS staffer provided an "explanation" and a link (in green) to a page with a link to get the phone number for your specific geographic location
<snip https://answers.microsoft.com/en-us/msoffice/forum/msoffice_install-mso_win10/how-to-reinstall-office-home-and-student-2007/fcd910a6-c4cf-4739-9cf2-1dc5b39e7e53?msgId=725b5bc7-f577-4366-9a33-3ba29d67f3dd >
Michelle V [MSFT]
We apologize for this inconvenience. We are currently fixing this bug in our Office products. In the meantime, you can
call the numbers for your specific country/region listed in this
article (https://support.office.com/en-us/article/-Telephone-activation-is-no-longer-supported-for-your-product-error-when-activating-Office-9b016cd2-0811-4cb3-b896-5a6a13177713?ui=en-US&rs=en-US&ad=US).
Please also note that this issue impacts Office non-subscribers only—those who purchased the product as a one-time purchase. For more information, see
What's the difference between Office 365 and Office 2016?
If this doesn't solve the issue, please contact our support agents linked from the bottom of the same article.
Again, we apologize for this issue. We are working to get this resolved quickly and will update this thread once the fix is available.
Thanks,
Michelle V.
Office Team
</snip>
Pre-Used "new" product keys:
This is totally a personal, unofficial, unsupported opinion. I think there is a problem in the Office Product Key supply chain AT MS! The less serious option is that someone is stealing new product keys directly from MS. More serious would be that someone
external to MS has partially broken the Office Product Key generation algorithm and can generate a limited number of keys.
When the problem was first being reported on the forum, just after 2016 was released I thought the problem was theft at a computer builder. Then it spread to multiple builders and now multiple Office versions. Here are some links I collected about the issue:
Stolen Product Keys in Supply Chain -
**Activating Office 2016 OEM license**(Dell?) Problem
https://answers.microsoft.com/en-us/office/forum/office_2016-office_install/activating-office-2016-oem-license/bf55e024-1d6c-4522-bf2c-c9e57f153275
4 me too’s, DELL
https://answers.microsoft.com/en-us/office/forum/office_2016-office_install/office-2016-bad-product-key/74d463e8-f052-46aa-9738-713a8764e694
DELL (not yet resolved in this question)
https://answers.microsoft.com/en-us/msoffice/forum/msoffice_install-mso_win10/product-key-in-use/65728210-0050-47f5-921d-8048606e2fab
- new OEM key already used, Oct 2016
https://answers.microsoft.com/en-us/office/forum/office_365hp-office_account/office-365-doesnt-recognize-my-microsoft-account/09e14bb1-bfcd-452b-8de7-1b7fe19e83c9
- 124 “ME TOO’S!” - account not recognized
https://answers.microsoft.com/en-us/office/forum/office_2016-office_install/login-says-emailphone-number-doesnt-match-software/90c3ce34-c8fc-44c8-91b2-d7bd5ea1ca22
3 “me too’s” in the first few hours! - account not recognized
https://answers.microsoft.com/en-us/office/forum/office_365hp-office_account/product-key-valid-but-redeemed-with-a-different/e73ddb43-df0d-4e8e-83a6-5b738fcbd94c ASUS
https://answers.microsoft.com/en-us/office/forum/office_2016-office_install/office-2016-activation-key-already-in-use/68931ba9-53ef-46d0-ab1a-4fd7457dda2d
- already activated with unknown hotmail
https://answers.microsoft.com/en-us/office/forum/office_2013_release-office_install/licensing-issue-with-mix-of-office-2013-oem-volume/ed90445a-af5b-4ffa-acaf-9a31038fc8c3
(Dell OEM Pro)
https://answers.microsoft.com/en-us/office/forum/office_2013_release-office_account/i-made-a-typo-in-the-email-address-i-entered-when/bf989b99-6d74-4065-881a-f10c083dd9e7
made typo in email during activation
Product Key Valid but redeemed with a different account-ASUS EE book 205TA Product key
stolen on supply chain - Atom
Several people have reported that when they try to activate brand new Office product keys they get a message that it has already been activated by a different email account. MS is providing no relieve for this problem.
A few people have been able to convince DELL to provide replacement product keys.
So far this problem has been reported by buyers of licenses from DELL and Best Buy, Lenovo, Asus (OEM H&S)
- ALeighS11 replied on Jan 7, 2016
- We bought 40 machines. I activated office on each one, no problem. Then I went in to set the laptops up for users, and they are not active again. I went on my live account, and ALL of the product codes are different than the product code cards I have been
given. Someone has to be screwing things up in the MS database. I have the cards in MY hand that say what product code I put in... and then on my ms live accounts they are totally different. No way is Dell giving away so many “Used” codes. I think MS is screwing
up on keeping track of what really has been used.
- </snip>
Mar 8 2016, There is a reported story that MS is claiming there is an alternate activation server working somewhere. But that does not seem to be the answer to the problems these people are reporting
http://www.computerworld.com/article/3041857/enterprise-applications/microsoft-goes-after-pirates-who-allegedly-activated-thousands-of-copies-of-windows-office.html#comments
This is a totally different problem. Sounds like someone selling a few (thousand) computers with “illegally” activate Windows and Office 2010, or Windows Server
https://torrentfreak.com/microsoft-sues-pirating-comcast-subscriber-160229/ - This link has
a link to the full legal complaint submitted by MS (MS vs Comcast … PDF)