The KB5002907 update was released on September 23 as an optional update through Windows Update for Microsoft 365 Apps installations more than 90 days out of date. However, shortly after release, reports emerged that the update was also affecting perpetual Office licenses.
Christian Van Hautte, who runs an MSP in Belgium, told BleepingComputer that five unrelated customers contacted his company within ten minutes on September 24, with dozens of PCs affected. 'The affected installations are all Office 2016 and Office 2019 Home & Business perpetual licenses,' he said. 'The common factor is KB5002907, an update released around September 23 and described as targeting outdated Microsoft 365 Apps installations — but it is clearly also landing on perpetual Office installs and breaking their license state.'
Van Hautte said re-entering the original product key restored activation. He also noted that even though the update is listed as optional, it installed automatically on his customers' devices. Furthermore, he found that the update appears to remove and reinstall the existing Office installation, which can fail if the system has mixed 32-bit and 64-bit Office components, leaving the device without Office.
Microsoft has paused the update but has not confirmed the root cause or whether mixed-bitness is a factor. Reddit users reported similar issues, with some able to reactivate by re-entering product keys.
The update was designed for Microsoft 365 Apps installations on the Current or Monthly Enterprise channels that are severely out of date. It is not intended for perpetual license versions, making the impact unexpected.