You've got a lot of Activate/Select/Copy/Paste stuff in your code that is not necessary and is difficult to follow.
I'd suggest trying the following code and see if that gives you errors.
Note: I've assumed the worksheet you're 'pasting' the data to is called "Sheet1". If not, you'll need to change the line of code accordingly.
Public Sub ReadFolder()
Dim wkbSrc As Workbook
Dim wkbDest As Workbook: Set wkbDest = ActiveWorkbook
Dim rngSrc As Range, rngDest As Range
Dim strFilePath As String, strFileName As String
Dim lngRow As Long: lngRow = 9
Application.DisplayAlerts = False
Application.ScreenUpdating = False
strFilePath = "C:\Users\*******\Desktop\IT Capability Assessment\Output Files\"
strFileName = Dir(strFilePath & "*.xlsx")
Do While Len(strFileName) > 0
Set wkbSrc = Workbooks.Open(strFilePath & strFileName)
Set rngSrc = wkbSrc.Sheets("Managers Summary").Rows("7:11")
Set rngDest = wkbDest.Sheets("Sheet1").Rows(lngRow & ":" & lngRow + 4) 'is "Sheet1" the name of the destination sheet?
rngDest.Value = rngSrc.Value
lngRow = lngRow + 5
wkbSrc.Close False
strFileName = Dir
Loop
Application.DisplayAlerts = True
Application.ScreenUpdating = True
End Sub
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