Would this work or would I have problems:
Using dd command to backup an entire SSD containing dual boot Windows/Ubuntu partitions into an .iso file, with the intent to then dd that iso back onto the same size SSD in the case of a drive failure?
Don’t do this. If you have a 1TB drive with only 10GB being occupied, your image will be 1TB, and you will need a >1TB drive to store it, and another to restore it.
If you only backup the data you could do it in a much smaller size drive and it will be a lot faster to perform backups (otherwise you will need hours every time you want to create a new image).