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You will need a new key at some point. When I did my 32-bit XP to 32-bit W10 upgrade the first step, XP to Vista, didn't ask for a key. I then upgraded Vista to Win7 without a key. It was the Windows 10 upgrade that wouldn't allow me to proceed until I had first activated the Windows 7, so that's when I needed to use a W7 key. The Windows 10 then got activated with a digital licence based on the Win7 having been activated.
This is not really true. Windows 10 upgrades check the installed key and if it detects an illegal key, it will fail to activate. However, some get lucky and it works. It realy depends on how it was activated e.g. an illegally activated kms key may fail, but a dodgy oem key (one use multiple times) may work. There is no obvious pattern, but you cannot assume all ilegally activated w7 licences will update and be activated.
We know that 64-bit computers work better with Windows 10 64-bit, but this thread is about already running Windows XP 32-bit and want to UPGRADE to 10 (not new installation). You can only upgrade from XP to Vista 32-bit to 7 32-bit and finally to 10 32-bit. As for the Windows keys, you can upgrade to the next version without entering a key, provided you select the appropriate type (Home or Pro). But you might need a key to activate before Setup allows you to upgrade again to the next version. I would not buy a Vista license just to activate Vista, I would activate it with some not so legit tools. I would use a genuine license only to Activate 7 and 10. I believe since I have a genuine valid license for the final version, I am 100% legal. A legal check would demand to see a valid license for Windows 10. How you got there they don't mind and they don't have the expertise to find out.
Actually my XP laptop gave up the ghost years before W10 was released, years before W8 come to that. Which was a shame as it had a licensed copy of Microsoft Office 2003 installed with no record of the installed key. In fact the only remaining working part was the (IDE) hard drive.
Yes, it was an interesting exercise, all done in a VM. But the aim was to get a working W10 with MS Office that I could then use on my little netbook. With it's maximum of 2GB RAM a 32-bit OS was ideal.
The idea is not totally crazy. Imagine a small business with some expensive software, such as an ERP application bought for at least 1000€ with thousands of client data. The application installation medium is not available and the Support company would charge a lot to reinstall, reconfigure and restore the backup. It makes perfect sense to upgrade the old PC with 4GB RAM and replace the old mechanical hard disk with SSD. You clone the old disk on the SSD and you have a much faster PC to work with. But Windows XP is outdated and you cannot do your job properly. So you decide to upgrade to 10. The only way to keep both your data and applications is to upgrade to Vista 32-bit, 7 32-bit and finally 10 32-bit. This thread explains it can be done.