Dear Wilson Liew,
Based on your description and the use of slmgr /ato, it appears that the affected devices may be attempting KMS-based activation, which is not applicable in this scenario. Microsoft 365 E3/E5 licenses activate Windows Enterprise via cloud-based Subscription Activation, not through KMS or product keys.
Here are Recommended Steps to Resolve
- Ensure Azure AD Join Status On each affected device, run the following command in an elevated Command Prompt:
dsregcmd /statusConfirm that the device showsAzureAdJoined: YESandDeviceAuthStatus: SUCCESS. - Remove Any KMS Keys If a generic KMS key was applied during installation, remove it to allow subscription activation to take over:
slmgr.vbs /upk slmgr.vbs /cpky slmgr.vbs /ckmsRestart the device after running these commands. Verify License Assignment Ensure that the user signing into the device has an active Microsoft 365 E3/E5 license that includes Windows 10/11 Enterprise E3/E5. You can confirm this in the Microsoft 365 Admin Center. - Allow Time for Subscription Activation After reboot and sign-in, Windows should automatically detect the license and activate the Enterprise edition. You can verify activation status by running:
slmgr /xpr
If activation still fails, please share the output of slmgr /dlv and dsregcmd /status for one of the affected devices. This will help us identify any environmental or configuration issues.
If the above response helps answer your question, remember to "Accept Answer" so that others in the community facing similar issues can easily find the solution. Your contribution is highly appreciated.
Best regards,
Harry Phan