Seems the solution is to get a new one.No I'm not using MS account as I can't get in. I have had MAJOR problems with MS over the years mainly because the original email address I had signed up with many years ago I no longer have and could never retrieve it. Many attempts calling MS for tech support is all in vain too.
When I have experienced the issue you noted earlier, I just randomly tried a couple times later and it eventually activated.
If this system was previously activated with the current version of Windows, you should be fine.