Hi @Debarshi Polley ,
you should be able to run the unactivated Windows 11 with limitations. For instance: You are not able to do personalizations like changing wallpapers, themes, accent colors. Also some features and apps might not be available.
From a legal perspective: Users are allowed to update a licensed Windows 10 to Windows 11. This means you need to have a license for Windows 10 (or Windows 11) before update.
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Regards
Andreas Baumgarten