However, experience shows if an inplace upgrade does not work, it is unlikely that other solutions e.g. sfc will be enough.
However, it is a fair point to try things like sfc first before trying an inplace upgrade.
Having said that, I mostly jump direct to doing an inplace upgrade as this...
The digital licence is not linked to the activation key. The digital licence is linked to the hardware id.
However, if OP reinstalls W10 on SAME pc, it will activate automatically REGARDLESS of using a local or MS account.
Sounds like something has glitched
Try this:
Set a local password, change setings option to require a password on waking pc, then reboot pc.
Then change option to never and remove local password and reboot.
Hmmm - that shows you had been activated with a dodgy volume licence key (gvlk) which is essentialy a pirated key.
Where did you get the key? You could try contacting person who sold the key but this rarely works.
Your only realistic option ia to buy a legitimate key.