Activation Problems

How to Fix Microsoft 365 Deactivation Error with Valid Subscription

Natalie Taylor Sep 28, 2026 869 views

Question details

The user needs to resolve an issue where Microsoft 365 applications like Excel show an account error and appear deactivated, even though their Family subscription is valid and active.

How to Fix Microsoft 365 Deactivation Error with a Valid Subscription

Product: Microsoft 365
Device & OS: not provided
Scenario: Attempting to use installed Microsoft 365 applications with an active Family subscription.
Observed behavior: Excel reports an account error and Microsoft 365 appears deactivated, despite authentication working and OneDrive being available.

Before you start

Ensure all Microsoft Office applications are completely closed. Before making any changes to the Windows Registry, create a registry backup or a system restore point.

Solution 1Recommended

Clear Microsoft Identity Cache and Registry Keys

Removing corrupted cached credentials and identity registry keys can resolve authentication conflicts causing the deactivation error.

This solution involves deleting temporary local application data related to Microsoft authentication, as well as removing the specific identity registry key that may be storing invalid token data.

Delete IdentityCache and OneAuth folders

Press Windows Key + R to open the Run dialog. Type %localappdata%\Microsoft and press Enter. Locate the 'OneAuth' and 'IdentityCache' folders. Back them up to another location if desired, then delete both folders.

Open Registry Editor

Click the Windows Start button, type 'regedit', and press Enter to launch the Registry Editor. If prompted by User Account Control, click Yes.

Backup and delete the Identity registry key

Navigate to HKEY_CURRENT_USER\SOFTWARE\Microsoft\Office\16.0\Common\Identity. Right-click the 'Identity' folder and select 'Export' to save a backup copy. Once backed up, right-click the folder again and choose 'Delete'.

Restart and sign in

Restart your computer. Launch Excel or any other Microsoft 365 application and sign in with your Microsoft account to reactivate.

Clear Microsoft Identity Cache and Registry Keys

Registry Editing Warning: Modifying the registry incorrectly can cause system instability. Always ensure you have exported a backup of the specific key before deleting it.

Solution 2

Reinstall Microsoft 365 Using the Offline Installer

If clearing the cache does not resolve the issue, performing a clean installation via the offline installer can fix deep-rooted activation module corruptions.

Free Microsoft Office alternative

Use WPS Office to Avoid Activation Hassles

If you are tired of dealing with complex subscription issues, account errors, and deactivated software, WPS Office is an excellent free alternative. It provides a robust, lightweight suite for all your document needs without the frustration of recurring activation glitches.

1. Download WPS Office: Visit the official WPS Office website and download the free installation package.
2. Install the Software: Run the installer and follow the simple on-screen instructions to complete the setup in minutes.
3. Open Your Files: Launch WPS Office and directly open your existing Microsoft Office files with full compatibility.

Free from complex activation errors and subscription lockouts.Fully compatible with Microsoft Excel (.xlsx), Word (.docx), and PowerPoint (.pptx) formats.Lightweight installation with a familiar, easy-to-navigate user interface.Seamless transition with no steep learning curve for Microsoft Office users.

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Frequently Asked Questions

Why does Microsoft 365 say deactivated when my Family subscription is active?

This commonly occurs due to corrupted local identity caches or conflicting credential tokens stored in your system's registry, which prevent the applications from verifying your subscription status.

Will deleting the Identity registry key affect my personal files?

No. Deleting the Identity registry key only clears the local authentication state for Office apps, forcing them to ask for your login credentials again. Your personal files and documents remain completely safe.

What should I do if the offline installer also fails to fix the account error?

If reinstalling does not work, you can use the Microsoft Support and Recovery Assistant (SaRA) tool to completely scrub existing Office installations and clear hidden conflicting files before attempting another clean install.

Installation & Activation