The user has not been assigned a license for the Document Merge add-on - in Sandbox

This was tested in a Full Copy sandbox. One of our users encountered this error message:
Error
Your login ID abc@abc.com has not been assigned a license for the Document Merge add-on.
Please contact your administrator to assign your license via Settings - Manage Licenses - Assigned Users.

However, he has been assigned the Doc Merge license.