Win 11 Activation problems

I bought a new MacBook with M2 ARM and used Time machine to migrate everything from old Mac.
The old Mac ran Parallels 18 and Win 10 and I deactivated Parallels on the old and activated it on new with no problems.
Since the new Mac can't run Win10, I created a new Win 11 VM. Before doing this I copied the Win 10 activation key from the registry.
The activation key doesn't work. Is the upgrade from 10 to 11 not free?