This paper investigates the achievable rate and spectral efficiency (SE) of an uplink cell-free massive multiple-input multiple-output Internet-of-Things (mMIMO-IoT) network over Ricean fading channels, where both access points and user equipments (UEs) are equipped with multiple antennas. We derive tight closed-form expressions for the lower-bound achievable rate and SE under maximum ratio combining and imperfect channel state information (CSI). Moreover, we propose a target-signal-to-interference-plus-noise-ratio-tracking opportunistic power control (TOPC) algorithm with gradual soft UE removal to mitigate the effects of unsupported UEs. The proposed TOPC algorithm is fully distributed, as each UE updates its transmit power based on local CSI. Numerical results show that adding more antennas at the UEs can enhance the achievable rate, but may degrade the achievable SE due to the increased pilot overhead. Moreover, the Ricean fading channels offer much higher achievable rate and SE than the Rayleigh fading channels, and our TOPC algorithm exhibits satisfactory performance in various aspects.