It does, but the catch is that they can pull the ripcord at anytime and the license requires you to agree to give up your license entitlement, meaning they are cleaning up and recalling free licenses from the past.
I've just built a new PC that is finally Windows 11 pro capable and despite still having my retail copy of XP pro(2002

) and the retail Windows 8 pro upgrade, I've had to buy an new PSU for the old system I cannibalized just to reattach it to my Microsoft account to be able to transfer my Windows 10/11 Pro entitlement across, and that was after trying to reinstall Windows 8/8.1 pro on the new hardware and activate - which I did and it worked - but just won't let me activate 10 pro or 11 Pro on the hardware, even logged in with my Microsoft account or using the in place Windows 10 pro on the nvme that had the activation from digital entitlement. So even if 11 ends up a stop gap it will have wiped out tens of millions of devices with retail licenses all to Microsoft's financial well being - because in a digital age it pays them to be shit at keeping track of your licenses, just like everyone guessed when Win 8 was "free"