Unfortunately, S-Gear is the only license in the Everything Bundle that isn't iLok Cloud compatible. We apologize for the confusion. In order to utilize S-Gear, you will need to deactivate the cloud session by going to the iLok License Manager and navigating to "File" and selecting "Close Cloud Session".
Once the session is closed, you will then be able to activate the licenses to your physical iLok USB dongle. You will find the Licenses under the "Available" tab within the iLok License Manager. Right click to activate. You can find the "available" tab by clicking on your username when signed into the iLok License Manager.
If issues persist, please contact support here.