This is what Microsoft says about S Mode. You should read it first.
Windows 11 in S mode is designed for security and performance, exclusively running apps from the Microsoft Store. If you want to install an app that isn’t available in the Microsoft Store, you’ll need to switch out of S mode.
Windows 11 in S mode is only available in the Windows 11 Home edition. If you have the Pro, Enterprise, or Education editions of Windows 10 in S mode, Windows Update will not offer Windows 11 because S mode is not available in those editions of Windows 11. Therefore, if you have the Pro, Enterprise or Education editions of Windows 10 in S mode, you’ll need to switch out of S mode to upgrade to Windows 11.
Switching out of S mode is one-way. If you make the switch, you won’t be able to go back to Windows 10 or Windows 11 in S mode. There’s no charge to switch out of S mode.
Personally I think changing to the Home Edition is sensible. It will give you freedom to use programs that are not sold/distributed by Microsoft. I would rather use the Home Edition instead of their s mode any day.
Switching out of S mode in Windows - Microsoft Support1
Learn how to switch out of S mode to install apps from outside of the Microsoft Store or to upgrade to Windows 11.