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Office Activation Errors

How to Fix Microsoft 365 Activation Error 29 on Windows 11

Maira MehtabMaira Mehtab Sep 25, 2026 870 views

Question details

The user needs to resolve an account error or 'Couldn't update license - Error 29' issue in Microsoft 365.

How to Fix Microsoft 365 Activation Error 29 on Windows 11
Product
Microsoft 365
Device & OS
Windows 11
Scenario
Attempting to use or update Microsoft 365 apps on a computer where previous work accounts were previously signed in.
Observed behavior
Microsoft 365 displays a yellow warning icon and an account error message stating 'Couldn't update license - Error 29'.
Before you start

Make sure you have completely closed all Microsoft Office applications (such as Word, Excel, and Outlook) running in the background and have your Microsoft account login credentials ready.

Solution 1Recommended

Clear Office Identity Cache and OneAuth Folders

Use this solution to remove stale authentication data that is causing conflicts with your Microsoft 365 license.

Error 29 often occurs when corrupted or outdated account credentials linger on your system, especially if you have used multiple work or personal accounts on the same computer. Deleting these cached identity files forces Office to generate fresh authentication tokens.

1
Close All Office Applications

Ensure all Microsoft 365 apps (Word, Excel, Outlook, etc.) are fully closed. Check the system tray or Task Manager to verify no Office processes are running in the background.

2
Enable Hidden Items in File Explorer

Open File Explorer in Windows 11. Click on 'View' in the top menu bar, hover over 'Show', and select 'Hidden items' so you can see the AppData folder.

3
Navigate to the Microsoft AppData Folder

In the File Explorer address bar, type 'C:\Users\your_username\AppData\Local\Microsoft' (replace 'your_username' with your actual Windows username) and press Enter.

4
Delete IdentityCache and OneAuth Contents

Locate the folder named 'IdentityCache' and delete it completely. Next, open the folder named 'OneAuth' and delete all the files inside it (do not delete the OneAuth folder itself).

5
Sign In to Office Again

Launch any Microsoft 365 application, such as Word. When prompted, enter your Microsoft account credentials to sign in and refresh your license.

Clear Office Identity Cache and OneAuth Folders
Safe to Delete: Deleting these folders will not remove your personal documents or Office files. It only clears temporary login credentials.
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Frequently Asked Questions

What causes Microsoft 365 Activation Error 29?

Error 29 typically occurs due to corrupted authentication cache data on your computer. It frequently happens if you have recently logged out of a work account or if multiple Microsoft accounts have been used on the same device, causing a conflict when verifying your software license.

How do I find the AppData folder in Windows 11 if it is missing?

The AppData folder is a system folder that is hidden by default in Windows. To reveal it, open File Explorer, click on the 'View' menu at the top, select 'Show', and then click on 'Hidden items'. You should now see the AppData folder inside your User directory.

Will fixing Error 29 delete any of my Word or Excel documents?

No. The troubleshooting process only involves deleting the 'IdentityCache' and contents of the 'OneAuth' folder. These files strictly contain temporary login credentials and authentication data. Your personal documents, spreadsheets, and presentations remain completely untouched and safe.

Do I need to reinstall Microsoft 365 to fix this account error?

In most cases, a full reinstallation is unnecessary. Clearing the IdentityCache and OneAuth folders usually resolves the error. However, if those steps fail, performing a quick online repair via the Windows Control Panel or using the Microsoft Office rollback procedure may be required.