Hello Adriene Williams,
You can upgrade the new laptop from Windows 11 Home to Pro using the Pro product key directly, but the reverse path which moving the Home license to the old laptop is not a clean swap. Microsoft licensing does not support “downgrading” an installed Pro edition to Home without reinstalling, because the edition change requires replacing system components. That’s why you cannot simply enter the Home key on a Pro installation and expect it to convert; the activation service will reject it.
If you want the old laptop to use the Home license, the supported method is to perform a clean installation of Windows 11 Home using the Home key during setup. This ensures the edition is correctly aligned with the license. There is no in‑place downgrade path from Pro to Home. If you do not want to lose data, you would need to back up files and reinstall Home, then restore your data afterward.
In short, upgrading Home to Pro is straightforward with the Pro key, but moving back from Pro to Home requires a reinstall. Microsoft does not provide a supported downgrade mechanism.
I hope you've found something useful here. If it helps you get more insight into the issue, it's appreciated to accept the answer. Should you have more questions, feel free to leave a message. Have a nice day!
Domic Vo.