The problem is that you are running a version of VMware Fusion which is too old for your macOS version, so it is incompatible (and is producing an unhelpful error message as a result).
There were fundamental changes in macOS Big Sur which mean that VMware Fusion 12 is the oldest version which will work.
Note that Fusion 10.1.6 is old enough that it wasn't officially supported on the previous two versions of macOS either, but it may have worked (with limitations). Fusion 11 added official support for macOS Mojave, Fusion 11.5 for macOS Catalina. See https://kb.vmware.com/s/article/2088571
If you are using VMware Fusion in a personal capacity only, and don't need the extra features in Fusion Pro, it is possible to get a free personal licence for VMware Fusion 12 Player. (It can be difficult to find but there have been other posts about it recently in this forum which should point you in the right direction.)
If you are using VMware Fusion in any kind of business capacity or you need the Pro version, then you'll need to pay for an upgrade from version 10 to version 12.
Checking one detail: you don't mention your Mac model, but the fact you have 32 GB of RAM on macOS Big Sur means that it must have an Intel processor. There may be compatibility issues preventing you using VMware Fusion 12 if you are running Big Sur on an older Mac which does not officially support that macOS version. Check the release notes for details: https://docs.vmware.com/en/VMware-Fusion/12.2.3/rn/vmware-fusion-1223-release-notes/index.html
If you had an Apple Silicon processor then you cannot run Intel-based virtual machines at all. VMware Fusion 12 wouldn't work, but you could run the VMware Fusion for Apple Silicon Technical Preview with ARM-based virtual machines. There is a separate forum for that software: https://communities.vmware.com/t5/Fusion-for-Apple-Silicon-Tech/ct-p/3022
