I'll give you my thoughts and do so knowing many will say it is overkill.
As long as buying new I would go with future proofing myself and spend a bit more. I say that knowing it is easy for me to spend your money
. I just retired, live normally IE far from wealthy, and am careful on how I spend my money. I bought a new computer a year ago and spent in the $900 range as I didn't want to find myself short on power in the near future.
I would be thinking memory, ssd HD, and processor (I'd go i5 unless I found a super deal on i7). Decent on board graphics should be ok but OOTP is improving graphics every year so a "cheap" dedicated card might be nice but cards are not cheap these days. Probably the best deals on cards come on new computers with them already installed.
If you're comfortable spending a bit more ($900-$1100) here's a couple of Dells..
One comes with a 1 TB ssd nvme (super fast) and on board graphics.
The other a 512 GB ssd nvme but a 1660 super graphics card. Yes, graphic overkill but certainly future proof for OOTP. I think if you had to buy that card stand alone it would be in the $700 range and that's if you could find one to buy.
https://deals.dell.com/en-us/productdetail/c5ob
https://deals.dell.com/en-us/productdetail/c5oh
Having said that this Inspiron would easily run OOTP at ~$300 less. Comes with a bigger ssd (512 vs 256 the 256 not being nearly big enough IMHO) than the $599 model but less memory. Memory is an easy addition if you decide you want to add a stick and not expensive.
https://deals.dell.com/en-us/productdetail/c5ox
I've never bought extended warranties and have never needed one.
Brad is probably right about it being the HD going bad in your current machine. Replacing could be cheap at $100-150 and if your not comfortable doing it I'm sure Best Buy, or local tech, could do it and move your data. But now your at around $200 that could be used to start over new.
Keep in mind these are just my thoughts as a "layman" when it comes to computers. Experts may "shoot me down" while laughing out loud
Good luck
