"This feature has been disabled by your administrator" when activating Office 365 ProPlus

When you try to activate Office 365 ProPlus from using Microsoft Word or Excel the first time, you might ran into this error message "This feature has been disabled by your administrator.  Enter a product key instead."

According to this KB article, https://support.microsoft.com/en-us/kb/3039000, this is something to do with the UseOnlineContent and SignInOption registry.

The SignInOption registry is associated with this group policy HKCU | Policies | Administrative Templates | Microsoft Office 2013 | Miscellaneous | Block Signing into Office.

Ensure it is not set to "None allowed", otherwise user will not be able to login with the ID to activiate the license.  Most likely you will have to use the Org ID Only to activate the license.