“A big downside here is that as far as Windows is concerned, this is different “hardware” so it won’t activate based on your physical device.”
You can transfer a Windows licence from another installation, so in OP’s situation, from the original installation. During Windows setup, select the ‘I don’t have a license key’ option, then once Windows is installed, go into settings, click the Windows isn’t activated option, and go through the activation troubleshooter.
I can’t remember exactly where, but somewhere in there is the option to transfer the license from another installation. It has to be the same version of Windows.