Quartus Prime Lite simulation error

I have installed Quartus Prime Lite in my system using the .tar file. Both questa_fe and questa_fse folders are available after installation. However, when I try to simulate my design an error is displayed as given below.

**** Running the ModelSim simulation ****

C:/intelFPGA_lite/21.1/questa_fse/win64/vsim -c -do firstexample.do

Unable to checkout a license. Make sure your license file environment variable (e.g., LM_LICENSE_FILE)

is set correctly and then run 'lmutil lmdiag' to diagnose the problem.

Unable to checkout a license. Vsim is closing.

** Error: Invalid license environment. Application closing.

Error.

From what I read I understood there is no need of license for Quartus Prime Lite but Questasim FPGA starter requires a free license. Will the license be downloaded along with the .tar file or do I have to download it separately? I f I have to down it separately, could you please show me the path to download it. I have registered in Self Service License Centre but cannot find the license downloading options.

Also, when I checked my folders both questa_fe and questa_fse have a LICENSE file and I have set the LM_LICENSE_PATH variable pointing to these files.. But the error still exists. I have used the default settings in Quartus Prime Lite for simulation. (Should I set the path for Questasim simulator like a third party EDA tool?)

Any help regarding this would be appreciated.