Windows VM on MacBook - Licensing Question

Hello, I am a Mac noob so I apologize in advance. I am using VMware Fusion to run a Windows 11 virtual machine on my M2 Mac. I want to purchase a Windows 11 Pro license and register it to the virtual machine. My question is: where will this license key bind to? If I wipe the VM, will the license be gone? Are there any issues with applying a license in a VM? Yes, the unlicensed version runs perfectly fine, but I just want to license it for the lols. Thanks.