How to reinstall Windows 11 on a smaller drive (dual boot)? [duplicate]

I’m preparing to switch from Windows 11 to Linux, but want to create a dual boot system for gaming purposes. I currently have Win 11 installed on a 1TB NVME drive. I bought a 500GB SSD I’d like to install Windows on so I can use the 1TB for Linux.

My question is whether I can just do a normal Windows install from USB drive pointing it at the new drive.

Will the new install see my current activation code and use it in the new install?

Will the existing install cause any problems due to having two viable Win 11 installs on the same machine?

Are there any gotchas I need to be aware of?