I've never used the backup/restore
master approach with that objective, but there's a warning on the Restore the master Database doc related to that procedure:
[...] the instance where the master database is being restored to
should be as close to an exact match to the original as possible. At a
minimum, this recovery instance should be the same version, edition,
and patch level, and it should have the same selection of features and
the same external configuration (hostname, cluster membership, and so
on) as the original instance. Doing otherwise might result in
undefined SQL Server instance behavior, with inconsistent feature
support, and is not guaranteed to be viable.
Since it's a VM, you could clone it and try an Upgrade in-place to upgrade
master to the newer version before the backup and restore to a brand new server:
With this approach, the SQL Server setup program upgrades the existing
SQL Server installation by replacing the existing SQL Server bits with
the new SQL Server bits and then upgrades each of the system and user
There's also a Migrate to a new installation section on that doc that could give you some guidance on how to move your data to a new clean server.