You can no longer use a Windows 7/8 licence to activate Windows 11.
In 2023 Microsoft changed the settings and blocked the old licences for activation of Windows 10. This also affected Windows 11 as an upgraded Widows 10 licence was not intended to activate windows 11 only an original Windows 10 licence is allowed for that free upgrade.
I'm afraid the bios update prompted a check on the licence and it has been refused, I don't think any process will allow the activation.
If you wish the challenge the scenario you will need to contact Microsoft support directly. Use the Get Help app in windows and search the phrase billing then select Contact Support at the bottom of the window.
There will be another couple of filters to select then you should see chat with an agent in your browser. Have the original product key to hand.