Office 365 doesn't see my office 365 App Store subscription

Let me start by saying that I had an office 365 subscription that I let lapse and I just purchased a new subscription through the app store.

I purchased office 365 subscription through the app store. When I open the a Microsoft app such as powerpoint it says "Subscription Required to Edit and Save. Start your free one month trial of Microsoft or sign in to activate an existing subscription". Then I click "activate". A pop up appears that tells me to A) "Go Premium" or B) "Sign in" or C) "Restore Previous Purchase". None of these options work. When I "Restore Previoius Purchase" It tries to create a license and a pop-up appears that says "The Apple ID doesn't have a paid Microsoft 365 subscription. Except it does.

I tried re-downloading the app. I deleted what was in my keychain access prior to that.

Not sure what to do.

Also my keychain won't remember my password to Microsoft in my keychain. It doesn't make any sense.