Unfortunately, AFAIK, Microsoft licensing rules do not allow using a standard Windows 11 Enterprise LTSC license to activate or legitimize a Windows 11 IoT Enterprise LTSC installation. Although both operating systems share a nearly identical underlying codebase, Microsoft treats them as separate product families with distinct licensing agreements. Standard Enterprise LTSC is governed by Volume Licensing terms, while IoT Enterprise LTSC is generally licensed through the OEM channel or specialized distributors for fixed-purpose devices. Because they are considered separate products rather than different tiers of the same product, cross-edition rights are not granted in standard licensing guides.
In addition, the downgrade rights included with Windows 11 Enterprise LTSC only apply to previous versions of the same edition, such as Windows 10 Enterprise LTSC. They do not extend laterally to the IoT edition. This distinction is maintained because the IoT version is designed with reduced hardware requirements to support legacy or specialized hardware that cannot run the standard version. Using a standard license to bypass these hardware checks on an unsupported machine would violate the terms of the End User License Agreement even if the software appears to function correctly.
To remain compliant in a production environment, you would need to acquire a dedicated Windows 11 IoT Enterprise LTSC license through an authorized distributor. This often requires a separate contract or a purchase through an Embedded OEM partner. If the machine's role involves direct file manipulation or general-purpose use by an operator, you should also verify that it fits Microsoft's definition of a dedicated-purpose device, as this is a prerequisite for using the IoT license legally.
More at https://learn.microsoft.com/en-us/windows/iot/iot-enterprise/overview
As usual in these type of scenarios, you would want to contact a Microsoft Licensing Specialist or your account representative to confirm this info.
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hth
Marcin