Thank you for this.

https://www.tenforums.com/windows-insider/38992-question-about-licence-activation-vm.html

I found a reply from another member who explained the situation very well.
I am...

I installed Windows 7 Ultimate retail on a new VM. Activated it online then upgraded it to Windows 10. The upgrade was a huge pain (Windows Update problem, if you've been there, you know what I mean)...