It should be noted that all important documents and data should be copied to an external hard drive, USB stick or DVD. Although there is an update variant from Windows XP to Windows 10 , a new installation of Windows 7 is absolutely necessary because of the too big difference between Windows 11, 10, ... and XP .
In the case of Windows XP to Windows 7 , the update is only a license update. You save a little money. However, if you want to continue using Windows XP legally, you should use a full version of Windows 10. It doesn't matter whether the full version is a Windows OEM or retail.
The virtual Windows XP PC is very good in terms of performance. I've already tested Windows 98 ;) You can still run old programs, even from the DOS days. The virtual machines can be cloned by making a copy on the hard disk (in case something goes wrong).