Hey Simons283, this is a great question.
I am verifying the entitlement piece and will get back to you but the documentation I found on the Nutanix website supports your theory.
Regarding the conversion itself, your Nutanix account team really should be brought in to consult the details around the conversion as they understand the process and the long term end results you will be looking for in your environment.
Some items to keep in mind for using the latest licensing model.
After the conversion to the new licensing model, the licenses will need to be applied through Prism Central. This simplifies the licensing process especially for larger environments so you are not having to visit every Prism Element cluster registered to PC.
The other piece is just to verify you have at least the minimum software levels on your clusters as detailed in the article below.
Article link
If you need assistance with deploying Prism Central or have any questions for the support teams, feel free to open a support case and we can get you taken care of.
Support portal
Thanks,
-SS