In Virtual Desktop Infrastructure (VDI) or Remote Desktop Services (RDS) environments, Microsoft 365 Apps must be deployed using Shared Computer Activation (SCA). This allows multiple users to log into the same server and use Office with their own license.
However, a common and frustrating error occurs when the Licensing Token fails to roam or renew properly. Users see:
“We can’t activate Windows on this device right now.”
“Unlicensed Product.”
This guide details exactly how to troubleshoot and fix these specific token errors.
The Core Problem: The Token Location
By default, Office stores the user’s licensing token in:
%localappdata%\Microsoft\Office\16.0\Licensing
In non-persistent VDI environments (where the VM is destroyed at logout), this folder is wiped. If you are not using FSLogix or Roaming Profiles to save this specific folder, the user must re-authenticate every single time they log in. Eventually, this hits an activation limit or gets stuck in a “Need Password” loop.
Solution 1: Verify SCA is Enabled
First, ensure you actually installed Office in Shared Computer mode.
1. Open Registry Editor (regedit).
2. Navigate to: HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Office\ClickToRun\Configuration
3. Check for a key named SharedComputerLicensing.
4. It must be set to 1.
If it is missing, you must reinstall Office with the Office Deployment Tool (ODT) using this XML configuration:
<Property Name="SharedComputerLicensing" Value="1" />
Solution 2: The “Licensing Token Roaming” GPO
If SCA is enabled but tokens are failing, you must force Office to save the token to a network location or a roamed path.
Using Group Policy:
1. Download the latest Administrative Templates for Microsoft 365 Apps.
2. Navigate to: Computer Configuration > Policies > Admin Templates > Microsoft Office 2016 (Machine) > Licensing Settings.
3. Enable “Specify the location to save the licensing token used by shared computer activation”.
4. Set the path to a folder that roams with the user (e.g., %AppData%\Microsoft\Office\Licensing).
Solution 3: The Hard Reset (Nuke the Tokens)
If a specific user is permanently stuck in a “We couldn’t verify your subscription” loop, you need to clear their corrupted tokens.
run this script as the User (Login Script or PowerShell):
# Close Office
Stop-Process -Name winword, excel, outlook -Force -ErrorAction SilentlyContinue
# Delete Token Folders
Remove-Item "$env:LOCALAPPDATA\Microsoft\Office\16.0\Licensing" -Recurse -Force -ErrorAction SilentlyContinue
Remove-Item "$env:APPDATA\Microsoft\Office\16.0\Licensing" -Recurse -Force -ErrorAction SilentlyContinue
# Reg Keys
Remove-ItemProperty -Path "HKCU:\Software\Microsoft\Office\16.0\Common\Identity" -Name "Identities" -Recurse -ErrorAction SilentlyContinue
Conclusion
Shared Computer Activation is powerful but fragile. 99% of issues are caused by the localappdata token file not being preserved between sessions. Implement FSLogix Office Containers or the GPO Token Roaming fix, and these errors should vanish.