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I'm trying to update the ContractId field on an Activated Order via process builder on Contract. However, it's throwing me an error 

You can't edit Contract Number on activated orders.: Contract ID.

I'm a System Admin and I have permission Edit Activated Orders enabled but I'm still unable to update the Contract Number via Process Builder, APEX, or for that matter even on the Page layout. Any idea what might be the problem?

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This is known behavior.You Cannot change the Contract once the order is activated. Please refer to this https://help.salesforce.com/articleView?id=order_edit.htm&type=5

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