Hi, Arun Gandhi
Welcome to Microsoft Q&A forum.
Sorry for this frustrating situation that you're encountering. Here are some workarounds you can try to resolve this issue:
Fix Word sign‑in/activation on macOS (Office for Mac)
- Quit all Office apps (Word, Excel, PowerPoint, Outlook, OneNote). Then restart your Mac and try signing in again in Word. This clears transient auth sessions and cached tokens.
Restore Office’s access to macOS Keychain
- Open Keychain Access.
- In the left pane, select login. From the File menu, choose Lock Keychain “login”.
- Launch Word. When prompted to allow keychain access, enter your Mac admin password and choose OK/Always Allow.
- Sign in when Word asks. Quit and reopen Word to confirm prompts no longer appear.
Remove stale Office licenses/credentials (safe reset)
- Quit all Office apps.
- Run Microsoft’s License Removal Tool to clear old Office keychain entries.
- Open Word and sign in/activate again. This is the fastest way to fix corrupted activation data.
If you installed Office from the Mac App Store, re‑validate the purchase
- Check your Apple Subscriptions to confirm Microsoft 365 is active.
- In Word, choose Restore Purchases (or follow “Restore previous purchase for Office for Mac”).
- Try again after 30–60 minutes if you hit server errors.
Confirm you’re using the correct account (the one tied to the paid Microsoft 365 subscription). If Word shows repeated sign‑in failures, ensure you’re not trying to activate with a different or retired SKU (e.g., Office 2016/2019). If needed, reinstall Office for Mac and activate by signing in with your Microsoft account.
Check activation limits (rare, but can look like a sign‑in loop). If you reached the install cap, de‑activate an older device at account.microsoft.com and retry in Word.
Tip: Keep all Office apps in /Applications. Moving them elsewhere can cause repeated keychain prompts and sign‑in failures.
If the error persists
Try step 3 (License Removal Tool) again, then sign in in Word first before opening other Office apps.
If you purchased via Apple but your Microsoft account isn’t recognizing it after restoring purchases, contact support (Microsoft or Apple) with purchase proof.
Hope this helps. Feel free to get back if you need further assistance.
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