Activation Problems

Fix Microsoft 365 Apps Not Recognizing Credentials or Activating (Error 29)

Chanuka Geekiyanage Sep 28, 2026 869 views

Question details

Locally installed Microsoft 365 applications fail to recognize the user's Microsoft account credentials and remain deactivated, despite the subscription functioning correctly online.

Fix Microsoft 365 Apps Not Recognizing Credentials or Activating

Product: Microsoft 365
Device & OS: Windows 11
Scenario: Attempting to use locally installed Office desktop applications like Word or Excel with an active Microsoft 365 Family subscription.
Observed behavior: The desktop applications do not recognize the Microsoft account, showing an unlicensed or deactivated status, often accompanied by Error Code 29.

Before you start

Ensure you have your Microsoft account email and password ready. It is highly recommended to close all Microsoft Office applications and create a backup of your Windows Registry before proceeding.

Solution 1Recommended

Clear Saved Office Credentials and Identity Cache

Removing corrupted cached credentials forces Office to prompt for a fresh login and restores authentication.

Authentication tokens stored locally on your device can become corrupted or outdated, causing Office to repeatedly reject valid credentials.

Open Credential Manager

Search for 'Credential Manager' in the Windows Start menu and open the application.

Delete Windows Credentials

Select 'Windows Credentials'. Scroll down to locate any entries containing 'MicrosoftOffice'. Click the drop-down arrow next to each and select 'Remove'.

Access Local AppData

Press the Win + R keys simultaneously, type '%localappdata%\Microsoft' into the Run dialog box, and press Enter.

Remove Identity Cache Folders

Locate the 'OneAuth' and 'IdentityCache' folders and delete them both. Restart your computer and attempt to sign in to Office again.

Clear Saved Office Credentials and Identity Cache

Clean Sign-in: By clearing these cached files, you guarantee that Microsoft 365 pulls fresh authentication data directly from Microsoft's servers.

Solution 2

Remove the Office Identity Registry Key

If clearing credentials does not work, resetting the Office identity in the Windows Registry can clear deep-seated activation errors like Error Code 29.

Solution 3

Test with a New Local Windows Account

A corrupted Windows user profile can prevent Office from correctly reading or storing your credentials.

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Frequently Asked Questions

What is Error Code 29 in Microsoft Office?

Error Code 29 is an activation and licensing error in Microsoft 365 often caused by corrupted cached credentials, network disruptions, or conflicting Office identity registry keys.

Will deleting the Identity folder in the Registry delete my Office files?

No. Modifying the Identity key only resets the authentication state of your Microsoft Office applications. Your personal documents, spreadsheets, and presentations remain completely safe on your local drive or OneDrive.

Why does my Microsoft 365 work on the web but not on the desktop app?

Web apps authenticate directly through your browser session, while desktop apps rely on locally cached tokens and the Windows Credential Manager. If the local cache on your PC is corrupted, desktop apps will fail to activate even if your subscription is perfectly valid online.

Can I recover my old credentials after clearing them from the Credential Manager?

Once deleted, Windows credentials cannot be restored from the manager. However, you simply need to enter your Microsoft account email and password the next time you open an Office app to generate a fresh, working credential token.

Installation & Activation