Processes in Microsoft 365 for setting up Office apps, redeeming product keys, and activating licenses.
If your version of MacOS is Big Sur, then the error you are seeing is caused by an update on the 13th of July, many people are seeing the exact same error, if you are unable to upgrade your MacOS to a newer compatible version (12 or higher), your Office apps will go into Read Only mode, on the link below the full details on that update are provided.
You can then only use the free version of the Office apps in a web browser, however, the online version Office apps only contain a cut-down set of features that is available in the locally installed version of the Office apps, so that may or may not suit your needs.
Word:
https://www.microsoft.com/microsoft-365/word
Excel:
https://www.microsoft.com/en-ie/microsoft-365/excel
PowerPoint: