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Office 2016 can't connect to Office account: “This feature has been disabled by your administrator”

On installing Office 2016, I tried to sign in to my Office account. However, it wouldn't let me try:

This feature has been disabled by your administrator

Enter a product key instead

This is impossible because I have an online subscription which doesn't come with a product key.

I am the administrator, and I created no such policy.

What could have caused this and how can I make it allow me to log in?

I've found lots of resources on this for Office 2013, but nothing for Office 2016.

Answer