Correct - even though you are using a Fusion product designed for an ARM processor and installed the ARM version of Windows 11 in a virtual machine, the Workstation product is designed for Intel processors only, and will NOT be able to run in an ARM-based VM.
Also note that nested virtualization is not supported for Fusion on M1/M2 Macs. Even if there was a version of Workstation that ran on Windows 11 ARM, you could not run it a virtual machine in the Fusion VM. That’s an Apple restriction.
(That also means that Hyper-V won’t work in a Windows 11 ARM VM).
