New to Virtualization can it do what I want?

As the title states I am new to Virtualization.
I am trying to figure out if it will do what I need.

1: I would like to "clone" a physical Windows 7 PC and be able to tinker with it on Windows 10 Pro and then be able to move some files-folders over to a flash drive and move it back to the physical PC.
Is there a way to access them on a virtual machine and copy them elsewhere?

2: I will have a few USB devices in the Windows 10 computer running the Virtualization software (5) or so devices that I would need to use through the Visualization software, will that be a problem?.
I read somewhere that only 2 can be used. Is that correct?

3: Windows activation: If I clone my PC using VMWare Standalone converter (or something else) I will need to buy Windows again for the new product key for the virtual machine otherwise it will fail activation, correct?

4: How do I go about changing the product key without causing more problems or triggering activation error on the physical machine?
Do I just boot up the virtual PC without internet access, change product key and then connect back to the internet?
I just don't want to mess up the activation on the physical machine too.

What Virtualization software would be best for my needs?

I use network sharing to move files between host/guest.

This article from 2010 show 5 USB devices in VirtualBox so I would guess it is at least 5 today :) I haven't used USB devices yet.

Cloning should cause issues with activation. Also, you would need a cloner that can restore to a dissimilar hardware. Or try running PAR Make Windows 7 bootable after motherboard swap