It would be helpful if the theme provider could clarify the license terms here. If the original purchase was advertised as a permanent license, the customer should be able to verify exactly what that license includes and whether annual renewal is required only for updates/support or for continued use of the theme itself.
Since the expired license is also preventing the latest version from being installed, I’d recommend checking the original purchase confirmation and invoice and contacting support with the order details. Hopefully they can confirm the licensing policy and restore update access if the license was indeed sold as lifetime.