Processes in Microsoft 365 for setting up Office apps, redeeming product keys, and activating licenses.
If your MacOS version is Big Sur, and cannot be updated, then like many other people are being affected by the changes they made in the July 13th update, your Office version would go into Read Only mode, they provide that information on this link.
The options you have on that device are to either use the free versions of the Office apps in a web browser, or you could install the free version of LibreOffice, that will work on Big Sur and will be compatible with all your previously created Office documents.