Upgrading server 2016 essentials to server 2022 standard

I'd suggest installing the hyper-v role (as only role) on host, then stand up two (or more) virtual machines for the various roles. The domain migration should not be a problem.

The two prerequisites to introducing the first 2019 or 2022 domain controller are that domain functional level needs to be 2008 or higher and older sysvol FRS replication needs to have been migrated to DFSR
https://techcommunity.microsoft.com/t5/Storage-at-Microsoft/Streamlined-Migration-of-FRS-to-DFSR-SYSVOL/ba-p/425405

I'd use dcdiag / repadmin tools to verify health `correcting all errors found` before starting `any` operations. Then stand up the new 2019 or 2022, patch it fully, license it, join existing domain, add active directory domain services, promote it also making it a GC (recommended), transfer FSMO roles over (optional), transfer pdc emulator role (optional), use dcdiag / repadmin tools to again verify health, when all is good you can decommission / demote old one.

A Windows Server CAL is a license that grants access Windows Server. CALs are used in conjunction with Microsoft Windows Server OS licenses to allow Users and/or Devices to access and utilize the services of that windows server
- User CALs allow a single user access to Windows Server from an unlimited number of devices
- Device CALs allow an unlimited number of users to access Windows Server from a single device