The message is only advising you of a version upgrade to a Fusion 13. It will not touch your existing Fusion installation. (Fusion 13 is a full version upgrade that must be installed manually).
Also, Fusion 12 is not supported for use on Ventura. You need to upgrade to Fusion 13.
It is also a very, very bad idea to place a VM on a folder that’s configured for any kind of cloud file sync service like OneDrive. Don’t do it. You are asking for problems with uncontrolled evacuation of files to cloud, corrupted copies of your VM in the cloud, performance issues, or file sysyem functions that Fusion expects that dont quite work the same (resulting in messages like you’ve posted).
Move the VM to a folder or disk that’s not synced to cloud and see if the same problem exists (that is, after you upgrade to Fusion 13).
- Paul (Technogeezer)
Editor of the Unofficial Fusion Companion Guides