Processes in Microsoft 365 for setting up Office apps, redeeming product keys, and activating licenses.
Some people are reporting this error with the Microsoft updater tool producing that error or continually looping.
Download the latest version of the Microsoft Updater Tool from this link and try using that to resolve the problem.
https://go.microsoft.com/fwlink/?linkid=830196
If that does not resolve the problem, at the top left of your Mac desktop, click the Apple icon and select 'About this Mac', what version of MacOS is installed on your computer?