Yes, but I was referring to your comment of some suggesting a Windows reinstall to fix a "problem". Not "upgrading" to a new version. While that is a "problem" with small drives, it does not suggest something is broken so "format and reinstall the OS".
That said, IMO, the "way to go" for the scenario you describe is to buy a bigger drive, then do a clean install. If a drive is too small to support an upgrade, then it is likely there will not be sufficient room even after a clean install for Windows to operate freely in - at least not for very long.