Sorry, we can't perform this action. Incompatible Office products are installed on your machine.
This error is caused when you have a mix of differently licensed Office products on your computer. For example, you may have Office 365 ProPlus which is the click-to-run version that operates off a subscription. On the same computer, you may also have a volume licensed Office product, such as Visio or Project, that may have been delivered by ISO or MSI. If this is the case you will constantly receive this nag message from OneDrive for Business. This will likely also cause transfer issues if you are using sync libraries.
Unfortunately, the only way to remedy this is to uninstall either one of the competing products (or remove OneDrive for Business). In probably all cases I would expect the Office 365 suite to be the victor. That said you will need to license the offending software–Visio or Project–through an Office 365 subscription.
Not good news I’m afraid. I doubt Microsoft will remedy this as I suspect all products will eventually become a subscription. But this is the fix.
Join the conversation on Twitter @SuperTekBoy.
I Had the same issue and for it was solved by disabling the File Collaboration.
OneDrive is still installed
I don’t have mixed subscriptions, but uninstalling OneDrive fixed this.
It may be related to a patch from MS: https://support.microsoft.com/en-us/help/3085509/october-13-2015-update-for-onedrive-for-business-for-office-2013-kb308 but I can’t be sure.
Thank you. Very helpful. I have Office 365 and Visio MSI. I was getting the error. Uninstalled OneDrive for Business and problem solved.