You say you’re using Endnote X7 but did you update your software to Endnote version X7.5 (which is needed to be compatible with Word/Office 2016). Refer to the knowledge base article: http://endnote.com/kb/141439
From your pics it looks like your application setting was mistakenly changed from EndNote (desktop) to Endnote Online. Go to the Endnote tab in the MS Word ribbon and click to select “Preferences”. In the pop-up dialog box click to select “Applications” then change the setting from EndNote Online to: Endnote. Close the dialog box. Now quit and restart MS Word to update the MS Word ribbon.
Refer to the knowledge base article: http://endnote.com/kb/82605