This message can appear when the offline machine attempts to validate a license but cannot reach the licensing servers. If you are certain the machine is offline, this indicates that the activation process is correctly detecting the lack of connectivity. You should see an option to proceed with offline activation; if not, ensure your SQL Prompt version is up‑to‑date, as older versions may not support the modern permit system.
: The offline machine generates a unique code (e.g., "ABC123"). Permit Generation redgate sql prompt offline activation