Darren -
I am testing this now on a laptop that came with 8.1 Home embedded and 10 Pro entitlement, using both Media Creation Tool and Tech Bench ISO download and will get back to you with what I find.
In Media Creation tool did you tick the box to "Create Media for another PC" and then uncheck the box to "Use the recommended settings for the this PC?" That latter setting likely scans the OS you're using to confirm and force its version. But they are contradictory.
I do not think the installer scans the BIOS for embedded Product Key, and haven't seen that it even activates from old OS Product Key in v.1511 until after install when/if you introduce it into the Change Product Key box as per the 1511 FAQ in Activation in Windows 10 - Windows Help .
Yes, I selected to create media for another pc and then unchecked the box to use the settings for my current pc. I then created a usb installer with both the 32bit and 64bit versions. I used that installer to upgrade my 32bit tablet, then did a clean install on my 64bit laptop (dual boot Home and Pro). The problem came when I got to Pro and only had Home after the install with no apparent way to get it back up to Pro.
I have no doubt that the installer is scanning the BIOS for the key. That was my initial impression even before I found the statement from Microsoft saying it does exactly that. Why do you think it doesn't scan it when Microsoft themselves say it does? I assume you read the very last paragraph of the section about activating with a Windows 7, 8 or 8.1 key in the expandable list at the bottom of the page you link to. That paragraph says that on embedded systems the product key is verified during setup and then the appropriate edition will be installed. It plainly says the embedded key is scanned during setup, not during activation, and then even clearly says that's what determines the version that gets installed. The point of activation is too late to determine which version gets installed, so if the embedded key determines that, as that paragraph says, it must read that key before it begins the install. If not, everyone would be getting the Home version and using another key that qualified for Pro would always be an after-the-fact upgrade - and you've already said that can't be done. Surely that's why the installer is not giving me an option and is not asking me for a key - because it already scanned the embedded Home key and therefore is automatically installing Home based on that key.