Error:

....

  File "c:\program files (x86)\arcgis\desktop10.7\arcpy\arcpy\analysis.py", line 1281, in Frequency

    raise e

ExecuteError: Failed to execute. Parameters are not valid.

ERROR 000824: The tool is not licensed.

Failed to execute (Frequency).

....

Reason:

Calculation of the number of observations assigned to an EO to determine if the EO fields should automatically be updated (count = 1) or requires user input (count > 1) requires the Analysis toolbox.

The problem is found on line 111:
Frequency_EOIDs = arcpy.Frequency_analysis(EO_ID, frequency_table, "EO_ID", "")


The Analysis tool is available with the Basic license in ArcPro but the Advanced license is required in 10.3 and 10.7.

Solution:

Run the ArcPro version of the Observations toolbox instead to avoid licensing issues.