Amazon WorkSpaces user needs to use a USB Software Key to run Application.

Unfortunately, Amazon WorkSpaces has limited USB redirection capabilities that are primarily focused on security authentication devices rather than software license dongles.

Currently, USB redirection in WorkSpaces is specifically designed to support YubiKey U2F authentication devices with PCoIP Windows WorkSpaces. The feature is disabled by default and must be explicitly enabled through Group Policy settings. Even when enabled, the USB redirection is restricted to specific YubiKey devices for authentication purposes.

WorkSpaces does not support general USB peripheral redirection for devices like USB drives, scanners, or printers. This limitation would likely extend to software license dongles as well, as they are not part of the validated device list.

If your engineering application requires a USB license dongle, this would not be supported in the current WorkSpaces environment. You might need to explore alternative licensing methods for the application that don't require physical USB devices, such as network licensing or cloud-based license authentication, if available from the software vendor.
Sources
Manage your Windows WorkSpaces in WorkSpaces Personal - Amazon WorkSpaces
USB redirection for WorkSpaces - Amazon WorkSpaces
Peripheral device support for WorkSpaces client applications - Amazon WorkSpaces
Mac Client USB Redirect | AWS re:Post