AM5 would be nicer. A 7600 costs about 200ish and a £35 Thermalright Peerless Assassin or Phantom Spirit would cool it without ever getting loud. Just need a good airflow case. If you like the design from Corsair, some deals around their 4000d airflow case including the 750W PSU.
Legal Windows 11 key cost me under £4 for a new machine. Same for Microsoft Office 2021 license.
The money you save allows for a solid case, good fans.
Montech offers some cheaper cases with decent fans.
I would suggest:
AM5 7600
MSI Tomahawk B650
Thermalright Phantom Spirit 120mm
Lian Li Lancool 216, Corsair 4000D Airflow, Lian Li O11 Air Mini, or any other case with good airflow.
Case fans is where you can overspend and buy poor fans or pay for top performance. If you get a good case, the money you saved not getting an AIO, can pay for a pack of 3 Phanteks T30. Give any good case 3 x T30 and a good air cooler and you’re gold.