I would want all traces of a Fusion version that's using kernel extensions (which is 12.1.2 on Catalina) gone from my Mac before updating it to a version that does not use kernel extensions.
First, uninstall Fusion 12.1.2 using the procedure in KB article https://kb.vmware.com/s/article/1017838 to remove the application and related auxiliary files; do not simply drag the Fusion application to the trash. Reboot after performing the procedure.
Have your Fusion license key handy because the process in the KB removes the license.
Now upgrade macOS to Monterey, then install Fusion 12.2.x.
- Paul (Technogeezer)
Editor of the Unofficial Fusion Companion Guides