How do you make your website great? Clarity can help you quickly see what's working on your site and where people get stuck. And it's free.

Noted That:

To install correctly this microsoft-clarity.zip.
Fisrt Download the microsoft-clarity.zip to your computer
Extract/Open microsoft-clarity.zip to Your Computer.
Then, Find readme.txt file inside microsoft-clarity.zip and Open readme.txt.
Now, Read the Requirements of this plugin. Which Wordpress Version and PHP Version are required to run this Plugin in Your Wordpress Site.
Then, Follow the the Tips Below.

Start the Tips:

1. First Download "microsoft-clarity.zip" Plugin to your Local Computer. (Click Download)

2. Then, Login to your "yourdomain.com/wp-admin" Dashboard.

3. Then, Click on "Plugins" + "Add New" from left sidemenu of Dashboard.

4. Now, Click on "Upload Plugin" button.

5. Now, Browse "microsoft-clarity.zip" Downloaded plugin from your computer, Where you downloaded microsoft-clarity.zip According to Step – 1 Above then, click on "Install Now"

6. Now, Click on "Active Plugin"

7. Then, See left sidemenu. "Microsoft Clarity" folder is added on left sidemenu. Now, Click on "Microsoft Clarity" folder.

Noted that: If you do not see "Microsoft Clarity" folder on left sidemenu then, see at left sidemenu "Settings" or "Tools".

8. Now you configure yourself oR Watch video tutorial below about Microsoft Clarity Configurtions and Settings or How to work "Microsoft Clarity" in your WordPress site.

After Activated Plugin According to Step-6 then,

Go to "Plugins" + "Installed Plugin" from Wordpress Admin Panel Leftside Menu.
or Direct go to: https://yourdomain/wp-admin/plugins.php
Then, Find "Microsoft Clarity" Activated Plugin from Plugin List.
Then, Click on "Settings" from Plugin that is Microsoft Clarity
Now, Edit/Add/Config the setting and Click on "Save Changes" button,

Guide

Guide
Before you install the plugin, you need a Clarity project ID. How to get a project ID If you don’t have a Clarity account… Sign up with Clarity Select Add new project Fill out form Select Create The resulting URL contains your project ID Example: `https://clarity.microsoft.com/projects/view/``xxxxxxxxx``/settings` Copy the project ID If you have a Clarity account… Sign in to Clarity Select the project The resulting URL contains your project ID Example: `https://clarity.microsoft.com/projects/view/``xxxxxxxxx``/settings` Copy the project ID Now, you’re ready to install the plugin. Installing the plugin Log in to the WordPress admin panel. Select Plugins > Add New Search for Microsoft Clarity Select Install Now > Activate Open Clarity plugin Settings Enter your Clarity project ID Save and you’re done!

Before you install the plugin, you need a Clarity project ID.

How to get a project ID

If you don’t have a Clarity account…

Sign up with Clarity
Select Add new project
Fill out form
Select Create
The resulting URL contains your project ID
Example: https://clarity.microsoft.com/projects/view/xxxxxxxxx/settings
Copy the project ID

If you have a Clarity account…

Sign in to Clarity
Select the project
The resulting URL contains your project ID
Example: https://clarity.microsoft.com/projects/view/xxxxxxxxx/settings
Copy the project ID

Now, you’re ready to install the plugin.

Installing the plugin

Log in to the WordPress admin panel. Select Plugins > Add New
Search for Microsoft Clarity
Select Install Now > Activate
Open Clarity plugin Settings
Enter your Clarity project ID
Save and you’re done!

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Reffered: https://wordpress.org/