Microsoft is currently investigating widespread reports of “Product Deactivated” errors affecting Microsoft 365 Office applications. The issue, which has been documented across Reddit and Microsoft’s community forums, is causing unexpected service disruptions for users.

Root Cause and Triggers
The deactivation errors primarily occur due to administrative licensing changes, including:
– User transfers between licensing groups
– Subscription changes (e.g., Office 365 E3 to Microsoft 365 E3)
– License group modifications
– Service plan adjustments
– Changes to “Latest version of Desktop Apps” settings

Quick Solutions
Users experiencing this issue can:
1. Click the “Reactivate” button and sign in when prompted
2. Sign out of all Microsoft 365 apps, close them, and restart with fresh login
3. Verify subscription status with administrators if problems persist

Technical Support
Microsoft’s engineering team is actively investigating and requests affected users to:
– Submit diagnostic data using the Office Licensing Diagnostic Tool
– Provide logs from the %temp%/diagnostics directory
– Monitor official support channels for updates

The company has not yet announced an official timeline for a permanent fix but continues to work on resolving the issue while providing temporary workarounds for affected users.