I believe that Owl-53 has put the finger on the problem. If I remember correctly, Microsoft only allows you to install Office Home and Student 2021 on a single Mac or PC. If you have an Office 365 subscription (rental plan), you are allowed to install Office on several of your own computers (Macs and/or PCs) at the same time. This is one way that Microsoft pushes people towards subscriptions.
It does appear that Microsoft might let you transfer your copy of Office 2021 from your Windows laptop to your new Mac, after which you would no longer be able to use it on your Windows laptop.
Microsoft Support – Troubleshoot installing Office
"How do I reinstall Office?
If you're reinstalling Office on a different computer than the one where you originally installed Office, note the following:
- For Office 365 subscriptions: You can install Office on all your devices and sign in to Office on five devices at the same time.
- For a one-time purchase of Office such as Office Home & Business, Office Home & Student, or Office Professional: You can install Office on only 1 PC or Mac. However, you may transfer Office 2021, 2019, or 2016 to another computer that belongs to you if you experience a hardware failure or you buy a new computer. For more information, see the Microsoft License Terms for your product, or see this blog post, Office now transferable."
As for compatibility with Sequoia, there's this:
Microsoft Support – Office 2021 and Office LTSC for Windows and Mac FAQ
"What are the operating system requirements for Office 2021 for Mac?
For Mac users, Office 2021 for Mac is supported on the three most recent versions of macOS. For more information on system requirements, see Microsoft 365 and Office Resources page."
On the linked page, it says "Office for Mac is supported on the three most recent versions of macOS. As new major versions of macOS are made generally available, Microsoft will drop support for the oldest version and support the newest and previous two versions of macOS."
Sequoia is currently one of the "most recent three", and it's been around for a while, so it sounds as if the current Office 2021 for Mac build should support Sequoia – if you can jump through Microsoft's hoops to transfer your copy of Office 2021 from your Windows laptop to your Mac.