Microsoft 365 features that help users manage their subscriptions, account settings, and billing information.
Hi Annie(Yuning) Chen ,
Changing a user's license from Microsoft 365 Business Standard to Microsoft 365 Business Standard with Microsoft 365 Copilot should not result in the user account being deactivated. As long as a valid license remains assigned and the subscription is active, the user account will continue to function normally.
When the license is updated, the user's account, mailbox, OneDrive data, and other Microsoft 365 services should remain accessible throughout the transition.
Users may be prompted to sign in again to their Microsoft 365 applications after the license change takes effect.
Office applications may temporarily display an "Account Notice" or activation-related message while the license update is being processed. In most cases, signing in again or allowing Office to complete the update resolves the issue.
It is normal for license changes to trigger temporary activation or licensing prompts. These prompts do not indicate that the user account has been deactivated.
Kindly let me know if this is helpful.