Hi Khanh,
FPP licenses are valid, transferable retail licenses, but they are not intended to legalize existing non‑genuine installations. Microsoft’s official position is that GGWA (Get Genuine Windows Agreement) is the correct licensing program to bring non-compliant devices back into compliance; FPP is meant for new or already genuine systems.
Technically, you can replace the product key on a non-genuine installation and activate it with a valid FPP key using slmgr /ipk or Settings, and activation will often succeed if the edition matches (e.g., Windows 11 Pro to Pro). However, this does not fully resolve licensing non-compliance from a legal standpoint, which is the key risk in your scenario.
There are no major activation limitations as long as the OS edition aligns and the hardware hasn’t exceeded activation thresholds, but you may encounter issues if the existing Windows image has been tampered with or improperly activated in the past. In those cases, activation may fail or behave inconsistently.
Reinstallation is not strictly required, but it is strongly recommended by Microsoft best practice to ensure the system is clean and genuinely licensed, especially when transitioning from non-genuine states. This avoids residual licensing artifacts and future activation instability.
In short, FPP works technically but is not the correct tool for legalization; if compliance matters, use GGWA for existing PCs and reserve FPP for future device replacements.
Harry.