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Insufficient Lincense or Out of Compilance - Smart Licensing alert

Hey guys, I upgraded a Catalyst 3850-48T-E from Denali-16.03.05b to Fuji-16.09.04 which supports only smart licensing, so after that as I expected the switch license "ipservice" went to EVAL mode.

Now i am trying to activate this license on the switch with smart licensing procedure, I am using the Cisco Satellite and i do the below commands on the switch:

no http secure server-identity-check
profile CiscoTAC-1
	no active
profile test1
	reporting smart-licensing-data
	destination address http http://"SatelliteIP"/Transportgateway/services/DeviceRequestHandler
	destination transport-method http
	destination transport-method email
	destination preferred-msg-format xml
ip http client source-interface vlan1
crypto pki trustpoint SLA-TrustPoint
	revocation-check none
license smart register idtoken "TokenID from Satellite"

Here is the logs which switch show:

Registration process is in progress. Use the 'show license status' command to check the progress and result
Switch#% Generating 2048 bit RSA keys, keys will be exportable...
[OK] (elapsed time was 2 seconds)

*Dec  2 08:23:19.839: %CRYPTO_ENGINE-5-KEY_ADDITION: A key named SLA-KeyPair2 has been generated or imported by crypto-engine
*Dec  2 08:23:20.109: %PKI-4-NOCONFIGAUTOSAVE: Configuration was modified.  Issue "write memory" to save new IOS PKI configuration
*Dec  2 08:23:24.110: %SMART_LIC-5-COMM_RESTORED: Communications with the Cisco Smart Software Manager (CSSM) restored
*Dec  2 08:23:24.652: %SMART_LIC-6-EXPORT_CONTROLLED: Usage of export controlled features is allowed
*Dec  2 08:23:24.656: %SMART_LIC-6-AGENT_REG_SUCCESS: Smart Agent for Licensing Registration successful. udi PID:WS-C3850-48T,SN:F********W
*Dec  2 08:23:28.138: %SMART_LIC-3-OUT_OF_COMPLIANCE: One or more entitlements are out of compliance
*Dec  2 08:23:28.141: %SMART_LIC-5-END_POINT_RESET: End Point list reset
*Dec  2 08:23:28.142: %SMART_LIC-6-AUTH_RENEW_SUCCESS: Authorization renewal successful. State=OOC for udi PID:WS-C3850-48T,SN:F********W

and the "show license all" command:

Switch#sh lice all
Smart Licensing Status

Smart Licensing is ENABLED

  Smart Account: ******
  Virtual Account: Default
  Export-Controlled Functionality: ALLOWED
  Initial Registration: SUCCEEDED on Dec 02 08:23:24 2019 UTC
  Last Renewal Attempt: None
  Registration Expires: Never

License Authorization:
  Status: OUT OF COMPLIANCE on Dec 02 08:23:28 2019 UTC
  Last Communication Attempt: SUCCEEDED on Dec 02 08:38:57 2019 UTC
  Next Communication Attempt: None
  Communication Deadline: None

License Conversion:
  Automatic Conversion Enabled: False
  Status: Not started

Export Authorization Key:
  Features Authorized:

  Status: DISABLED

Data Privacy:
  Sending Hostname: yes
    Callhome hostname privacy: DISABLED
    Smart Licensing hostname privacy: DISABLED
  Version privacy: DISABLED

  Type: Callhome

License Usage

(C3850-48 IP Services):
  Count: 1
  Version: 1.0
  Status: PENDING
  Export status: NOT RESTRICTED

Product Information
UDI: PID:WS-C3850-48T,SN:F*****W

Agent Version
Smart Agent for Licensing:

Reservation Info
License reservation: DISABLED

and in the Satellite workspace i get this alert "insufficient license: the virtual account DEFAULT has a shortage of "C3850_48_Ipserv" licenses. 1 license is required to return to compliance"

So my question from you guys is this, What is the above alert? Why am i getting this? Is it important and I shall not ignore this? What about the switch? Is it really works with ipservice now? How do i get rid of this situation?

Thanks All

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