Game licences authorise you to play your purchased content on the console you are signed into with your PSN account.
How to Enable PS5 Console Sharing
PS5 Console Sharing and Offline Play is automatically enabled on the PS5 console you use to sign in to PlayStation™ Network for the first time.
- Go to Settings, Users and Accounts, Other, Console Sharing and Offline Play.
- Select Enable.
Your Add-Ons May Exceed the 64 GB Storage Space Limit
You can learn more about this issue and how you can work around it here: PlayStation 5 - 64 GB Limit on Add-Ons