I've worked with a live environment USB drive a few times but found the drives to be too slow for substantial use. The laptop is an old Toshiba Satellite running Windows 10 with an old Intel 47xx and 12GB of memory. Works fine but obviously trying to leave Windows. App-wise, I know my wife is going to want to use Microsoft Word and Excel, and we always use this laptop for our taxes, so TurboTax. Disk-wise, I bought a new 1TB SSD to use for this and as it currently only has a 256GB drive, I'll have plenty of room for partitions.
Interesting strategy having Windows partitions at the beginning and end of the drive. Was that intentional to maybe make Windows not notice Linux? What boot manager are you using? The fact that you've went so long without issue certainly makes it sound like a good way to avoid Windows messing things up, but maybe your boot manager does a better job than others too.