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I don't know what you mean by the Steam Edition. That's not even listed on the store page. All versions are now Anniversary Editions.
FSX Steam Edition is best described as a dusted off version of the "Flight Simulator X Gold Edition" DVD from circa 2006-2008. Microsoft 'permanently' quit the Flight Simulator franchise in 2010, but simmers kept FSX going for another decade because it is an easy platform to create mods and expansion products for.
As much as I've enjoyed FSX over the last 15+ years, I'm reluctant to recommend it to newcomers in the Windows 11 era. A lot of people aren't able to get FSX to run 'out of the box' because new installs of Windows are often missing important legacy framework and drivers. MSFS 2020 on the other hand has beautiful graphics, but it is a data and storage hog compared to FSX.
My understanding is that, once purchased, there are no individual upgrade packages. But the price difference is also quite substantial between the versions (to double the price of Standard for the Premium Deluxe).
The breakdown of what is in each version is explained better here (for reference only -- don't buy these discs!) :
https://www.aerosoft.com/en/shop/flight/microsoft-flight-simulator/msfs-simulator/3044/microsoft-flight-simulator-premium-deluxe
Keep in mind that the Standard version actually provides more than 20 aircraft now, because several additional aircraft were added in the Game of the Year, 40th Anniversary, and Top Gun: Maverick updates. Also, all the versions get the same World and City updates for free. And finally, many of the DLC aircraft and airports sold in the Marketplace are superior to Microsoft's content offered in the Premium/Deluxe tiers.
Unfortunately, you missed the big MSFS STEAM sale, the next ought to be in maybe three months or so.
You can decide were to install the bulk of the game files, but there are some files that the game puts in your User folder that gets some people upset because those can be larger than they expect to see on their Windows drive.
@Rever
The only plane that stands out is the Dreamliner, but if that available as a single addon via the market, the Premium Deluxe doesn't justify the price for me.
It's also possible I end up not liking it as much as I thought I would.
Apart from the Dreamliner, the only thing I'd like to add are the Taiwan area and airports (if that's not already included or available via add-ons).
At this point I would go with the regular version, if you are likely to buy the 2024 version. There is plenty to do and see with just the base game. As time went on and I started to get bored that is when having an extra 10 planes became more worth it for more than just the steam gauge Cessna 172. I am not sure if you will get there or not before you buy 2024?
The Steam MSFS Anniversary Edition is around 150 GB installed. Any updates or optional DLC will increase the storage size. You can install the Steam version to any drive you have available.
Using a SSD is the best route and having about 500GB is a good number to work with. Make sure your PC meets at LEAST the minimum requirements. The more you can afford to go big the better off you will be. That applies to Video Card and RAM as well.
I would do plenty of research ahead of purchasing including a thorough perusing of the Official Forums at flightsimulator.com where there is much more traffic and info available. The newer and cleaner ( clutter/bloatware free) the PC is will save you headaches as well.
The Dreamliner is not available as a stand alone aircraft at this time. You would have to upgrade from the Anniversary Edition to the PD Edition.
Most freeware and payware aircraft packages are 1-2 GB each, same with airport sceneries, so you can easily manage your community folder to stay under 30 GB or so. However there are some exceptions, for example the free FSLTL live traffic addon which is over 40 GB alone. But as I said, if you are either selective with your mods and/or only buy from the in-game marketplace, your C: should be very minimally impacted.