That's the important nuance: activated does not necessarily mean properly licensed. Agreed they do not warn you about that when they collect your money for the retail license key. In terms of warnings Microsoft will warn you that the Windows instance is unsupported if you run their checking tool in the ARM virtual machine. You thus can activate a retail license on the Windows ARM virtual machine. Also you have noticed there is no unique EULA in the Windows ARM. This takes us back to the recent blog post where a Microsoft employee says Retail licenses will activate on anything. The worries about support are a moot point because the combination is not licensable per the terms even if it activates. You cannot license an M1 Mac for Windows - this is the whole discussion around the fact that Microsoft only licenses and sells Windows ARM to OEMs - so you thus cannot volume license a virtual machine on an M1 Mac. If all permitted Virtual OSEs are used Customer may use the Physical OSE only to host and manage the Virtual OSEs. Licensed Users may run Windows software acquired through a volume licensing agreement on up to four Virtual OSEs locally on devices licensed with a Qualifying Operating System. This local use right applies to VDA Per Device licenses only if the Licensed Device is also licensed with a Qualifying Operating System. " Customer may run Windows software acquired through a volume licensing agreement on up to four Virtual OSEs locally on Licensed Devices. We are not trying to license Windows on M1 Macs, we are trying to license Windows running in a VM which happens to run on an M1 Mac. Realistically we have been discussing this the wrong way for a long time. If they actually let you install volume licenses (handled by a KMS server)." I am glad you touched on volume licenses. "What worries me is that there still don't seem to exist any explicit disclaimers from Microsoft.
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