Microsoft Fixes Random Product Deactivation Errors in Office 365 Apps

Microsoft has resolved a widespread issue causing unexpected "Product Deactivated" errors for customers using Microsoft 365 Office applications. The problem emerged after multiple users reported random deactivation warnings across various Office apps, triggering confusion and potential workflow disruptions.

The technical glitch primarily stemmed from administrative licensing changes within organizations. Specific scenarios that could trigger the deactivation included switching subscriptions between Office 365 E3 and Microsoft 365 E3, moving users between licensing groups, and modifying service plan settings.

According to Microsoft's support documentation, the errors could be initiated by several administrative actions such as removing and re-adding users to license groups, toggling license service plans, or adjusting the "Latest version of Desktop Apps" service plan under Microsoft 365 subscriptions.

The company's engineering team has since deployed a service-side patch to address these unexpected product deactivations. This resolution comes as a relief for many organizations experiencing intermittent authentication challenges with their Microsoft 365 applications.

For users still encountering the issue, Microsoft recommends two primary workaround strategies. The first approach involves clicking the "Reactivate" button on the error banner and signing in when prompted. Alternatively, users can sign out of all Microsoft 365 apps, completely close them, restart the applications, and then sign back in.

If persistent deactivation errors continue, users are advised to consult their organizational administrators to verify subscription status and ensure no underlying licensing complications exist. Microsoft has also suggested that affected users collect Office licensing diagnostics from the %temp%/diagnostics directory to assist support engineers in troubleshooting.

This resolution highlights Microsoft's ongoing commitment to maintaining smooth operational experiences for its Microsoft 365 ecosystem. The quick response to this licensing-related issue demonstrates the company's proactive approach to addressing customer-reported technical challenges.

Organizations utilizing Microsoft 365 are recommended to update their Office applications to the latest version to ensure they benefit from the recent patch and minimize potential disruptions to their workplace productivity.

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