Hello, Tarun Kundhi.
Original VM remains activated.....
The Windows 10/11 EULA says:
2. Installation and Use Rights. a. License. The software is licensed, not sold. Under this agreement, we grant you the right to install and run one instance of the software on your device (the licensed device), for use by one person at a time, so long as you comply with all the terms of this agreement.... b. Device. In this agreement, “device” means a hardware system (whether physical or virtual) with an internal storage device capable of running the software. ...... 4. Transfer. ... b. Stand-alone software. If you acquired the software as stand-alone software (and also if you upgraded from software you acquired as stand-alone software), you may transfer the software to another device that belongs to you. ... .... Every time you transfer the software to a new device, you must remove the software from the prior device. You may not transfer the software to share licenses between devices...
In other words, you should first deactivate and uninstall the OS on the old virtual machine, and only after that, install and activate it on the new one.
On the old VM, run the Command Prompt as an Administrator and run the command:
slmgr.vbs /upk
and restart the virtual PC. Check the activation and make sure that the OS is not activated. Then, delete the OS on the old VM.
Install Windows on a new virtual machine and enter a unique activation key from the purchased BOX/ESD license during installation. You can also activate it after installation either by entering the key on the OS settings page "Activation", or by executing commands in the Command Prompt running as an Administrator.:
slmgr.vbs /ipk <ProductKey>
slmgr.vbs /ato
where <ProductKey> is a 25-digit unique product key in the XXXXX-XXXXX-XXXXX-XXXXX-XXXXX format.
and restart the VM. After 5-7 minutes, check if the activation has passed.
If activation failed, you should contact a Microsoft support specialist in the chat. To do this, launch the GetHelp app.:
In the application window, type (without quotes) "agent support" into the search bar and press Enter. Ignore the search results, and click on the "Contact Support" button at the bottom. On the next page, select "Windows" and "Technical Support" from the drop-down lists, and then click on "Confirm". Next, select the chat "Chat with a support agent in your web browser" and on the next page (if requested), enter your email address and click on "Confirm". The browser will start and a chat window will open in a new browser tab. Wait for the specialist's response.