Thanks for explaining that. One thing I need to confirm is whether the old device was removed manually from your Microsoft account page, because removal breaks the link to the digital license.
When a device is removed from your Microsoft account, Microsoft no longer keeps the activation record for that hardware profile. The Activation Troubleshooter depends on that record. Since the device is no longer listed, the system cannot match your digital license to your new installation. Microsoft does not provide a way to restore a removed device, so Windows will need a valid product key or a new digital license to activate.