This is still possible. The need for Item Ledgers complicates the setup a little, but still very possible.
Your WIP output will need to be setup as individual Items, each with their own BOM and Routing. You will need Locations defined for your FG Location, WIP Location, and potentially a Raw Material Location, and corresponding SKU records for the products that will be either Output or Consumed from those Locations. For your FG Location you will need to define "Components at Location" on the Work Center so it knows to consume from your WIP Location rather than the FG Location.
Each WIP Item is a component of the upper level, such as FG consumes WIP 3, which consumes WIP 2, which consumes WIP 1, which consumes the Raw Materials. You will likely end up with multiple Production Orders due to the different Locations, but I would still recommend "Make-to-Order" Manufacturing Policy on both the WIP and FG Items to group as much as possible onto a single Production Order (if it makes sense to do so).
Utilizing the Backflush Flushing Method on the Raw Materials and WIP Items, as well as Routing Link Codes on the Operations and BOMs should allow the consumption to be fairly automated, as long as you process your Output at each level first.
I would say this can be a fairly tricky setup to get correct on all levels, so I would encourage you to reach out to your Business Central partner to work through the configuration.